Analytical Study of the Research Gap in the Economics of Urbanisation in Nigerian Intermediate Cities

Nigeria's urbanisation research is dominated by studies of Lagos and Abuja, leaving intermediate cities with populations between 500,000 and 2 million largely understudied despite their growing economic importance. This study examined the research gap in the economics of urbanisation in Nigerian intermediate cities through systematic review and original analysis covering Ibadan, Kano, Benin City, Onitsha, Kaduna, and Jos. A systematic scoping review of 10 databases identified 41 publications from 2019 to 2024 on Nigerian urbanisation economics, of which only 8 focused exclusively on intermediate cities and only 3 employed rigorous urban economic analytical frameworks. Original empirical analysis examined agglomeration economies, wage premiums, and density-productivity relationships in the six selected intermediate cities using NBS Labour Force Survey data and satellite nighttime light intensity data as productivity proxies. Results showed significant but heterogeneous agglomeration effects across cities, with Kano and Ibadan showing stronger agglomeration economies than Jos and Benin City. The urban wage premium averaged 23.4 percent over rural areas for equivalent workers. Population density showed positive but diminishing returns on productivity. Five research gaps were identified: housing market price dynamics, informal sector agglomeration, intra-city spatial inequality, economic effects of ethnic diversity in intermediate cities, and climate change adaptation in urban economic planning. Recommendations include NBS developing city-level economic accounts and universities establishing urban economics research centres.

Keywords: urbanisation economics, intermediate cities, agglomeration economies, Nigeria, urban wage premium