Tackling inequality has been a major concern of the international development community as strategy to ending extreme poverty. Addressing inequality is of concern because inequality is the cause and consequence of the failure of the market system as well as the political system, and contributes to the instability of our economic and political systems, which in turn contributes to increased inequality. The focus of this paper is, why is inequality growing in Nigeria to the extent it is, and what

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... are the consequences? The submission is that Nigeria is paying a high price for its level of inequality-unstable economic system, less efficient economic system, less growth and non-inclusive growth, a less cohesive society, and a democracy that has been put in peril. Using standard measures of inequality, the paper demonstrates that inequality in its various dimensions has risen over the past two decades in Nigeria. These include income inequality and gender inequality. The price Nigeria has paid for rising inequality comprise non-inclusive growth, non-poverty reducing growth, output and human development loss due to gender inequity, civil conflict and political instability, and non-maturing democracy. To reverse this price, inequality-reducing development policies would need to be effectively implemented. "We live in a world of extraordinary inequalities in opportunities both within and across countries"-Paul D. Wolfowitz, Forward to World Development Report, 2006.