THE WEALTH DISPARITY BETWEEN UEA AND NIGERIA

Someone asked Why? The wealth disparity between the UAE and Nigeria primarily stems from differences in population size, resource management, governance, and economic diversification.

Countries like the UAE, Saudi Arabia, and Kuwait have relatively small native populations and substantial oil production. The UAE, for instance, produces 4.24 million barrels of oil per day with a native population of about 1.17 million people. This allows for a high GDP per capita and concentrated wealth distribution. In contrast, Nigeria, with a population of 216.7 million, produces only 1.22 to 1.94 million barrels per day. The larger population dilutes the economic benefits of its oil production.

The population of UAE is 9.00 million (2023 estimate) but 7.83 million residents are foreign nationals. It is the 7th highest producer of oil per day in the world.

Additionally, countries like the UAE have centralized, stable governance structures and legal systems that facilitate efficient management of resources, investment in infrastructure, and diversification of the economy. The UAE has used its oil wealth to develop other sectors, such as tourism, finance, and technology, reducing dependence on oil revenues. 

Nigeria, by contrast, faces significant challenges due to its complex makeup as a multi-faith, multi-ethnic, and multi-lingual society with numerous legal and political systems. It speaks 500 languages, has 372 ethnicities, has more than 100 cities, inherited more than 170 precolonial systems; and inherited income and mentality disparities. This complexity often leads to governance challenges, corruption, and inefficient resource management. Furthermore, social, economic, and political tensions can impede national development, making it difficult to implement cohesive economic policies or foster investment and growth outside the oil sector.

Thus, while both the UAE and Nigeria are oil producers, their different demographic compositions, governance structures, and approaches to economic diversification explain why the UAE is significantly wealthier than Nigeria.