<p>The global urgency for equitable income distribution has motivated researchers to explore the possible determinants of income inequality in the literature, but the crucial impact of governance quality remains underexplored from a country-level perspective. This research provides a fresh perspective on the factors driving income inequality in Nigeria using time series data for the period 1996–2022. The empirical analysis was accomplished using comprehensive econometric techniques, including autoregressive distributed lag (ARDL), fully modified ordinary least squares (FMOLS), and dynamic ordinary least squares (DOLS). Our findings demonstrate that rising income inequality in Nigeria is driven by rising economic growth, trade openness, and inflation, while improvement in educational attainment mitigates income inequality. Furthermore, the presence of strong governance frameworks, including the enforcement of the rule of law, political stability, regulatory quality, voice and accountability and effective governance are crucial for promoting equitable distribution of income. The findings of this study offer significant policy implications for policymakers in the formulation of policies for ensuring the equitable distribution of income in the country.</p>