An important finding from analyzing thesurvey data from the poverty assessment study on Nigeria isthe concentration of the poor in communities in which mostof the other households are also poor, and the tendency ofthe non-poor households to reside in communities in whichthe population is largely non-poor. As a result, the overallincome inequality in the country is due largely to incomeinequality between communities and much less to incomeinequality between households within communities. Toillustrate this concentration of the poor and the non-poorin separate communities, all the communities that wereincluded in the household expenditure survey were dividedinto four categories according to two criteria: first, theshare of poor households in the community and second, theaverage per capita income of all the households in thecommunity. Although the sample for each community is verysmall, all the conclusions have been drawn for the entirecategory of communities in which the size of the sample was adequate.