Background of the Study :
Economic policies in Nigeria have long aimed at fostering equitable growth, yet persistent income inequality remains a critical challenge, particularly in urban centers like Abuja. This study investigates the relationship between economic policies implemented between 2000 and 2020 and their impact on income distribution. Abuja, as the political and administrative hub of Nigeria, has experienced significant policy shifts including fiscal reforms, subsidy adjustments, and social welfare initiatives. Despite these measures, disparities in income distribution have widened, raising concerns about the inclusivity of growth strategies (Umar, 2023). The literature indicates that while some policies have generated macroeconomic stability, they have also inadvertently favored higher income groups, leading to a stratified society (Nwosu, 2024). This study explores the mechanisms through which economic policies have influenced income inequality in Abuja, taking into account factors such as taxation, public spending, and market liberalization. By employing both qualitative and quantitative approaches, the research seeks to uncover the underlying dynamics of policy impacts on income distribution and provide actionable insights for more inclusive economic planning (Okeke, 2025).
Statement of the Problem
Despite a series of economic reforms, income inequality in Abuja remains alarmingly high. Current policies appear to benefit certain segments of society while leaving low-income groups with limited access to opportunities. This disparity undermines social cohesion and economic stability. The misalignment between policy objectives and actual income distribution outcomes is a major concern, as it suggests that current economic strategies may not be adequately addressing the needs of marginalized communities. This study aims to explore the factors that contribute to this growing income gap and assess the effectiveness of existing policies. It also seeks to determine whether adjustments in fiscal policy, taxation, and public expenditure could lead to a more equitable distribution of income across Abuja’s diverse population (Umar, 2023).
Objectives of the Study:
1. To examine the impact of economic policies on income inequality in Abuja.
2. To identify the key drivers of income disparity in the region.
3. To recommend policy interventions for reducing income inequality.
Research Questions:
1. How do economic policies influence income distribution in Abuja?
2. What are the main factors driving income inequality in the region?
3. What policy measures can mitigate the adverse effects of income disparity?
Research Hypotheses:
1. Economic policies have a significant effect on income distribution.
2. Inadequate fiscal policies contribute to higher income inequality.
3. Policy reforms focused on social welfare can reduce income disparities.
Significance of the Study (100 words):
This study is significant as it sheds light on the impact of economic policies on income inequality in Abuja. The findings will be invaluable for policymakers, economists, and social planners seeking to promote inclusive growth. By identifying the gaps between policy intent and income distribution outcomes, the research offers evidence-based recommendations for designing more equitable economic strategies. The study contributes to the broader discourse on social justice and sustainable development in Nigeria (Umar, 2023).
Scope and Limitations of the Study:
This study is limited to investigating the relationship between economic policies and income inequality in Abuja. It focuses on selected fiscal and social policies and does not extend to other regions or non-economic factors.
Definitions of Terms:
1. Economic Policies: Strategies and actions undertaken by governments to influence economic performance.
2. Income Inequality: The unequal distribution of income within a population.
3. Fiscal Policy: Government decisions on taxation and spending aimed at influencing the economy.
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