Nigeria's Poverty Crisis: 129 Million People Affected - World Bank

Nigeria's Alarming Poverty Rate

“This stark increase partly reflects Nigeria's beleaguered growth record...”

World Bank Report: Nigeria's poverty crisis worsens, 129 million live in poverty due to slow economic growth and high inflation.

Nigeria's poverty crisis deepens, with 129 million citizens struggling to make ends meet, says the World Bank's latest Nigeria Development Update. The report cites slow economic growth and high inflation as primary drivers.

The World Bank's report sounds the alarm on Nigeria's economic stagnation, emphasizing the need for swift action to tackle poverty. With nearly 60% of the population living in poverty, bold policy reforms are crucial.

“With growth proving too slow to outpace inflation, poverty has risen sharply,” the World Bank said.

“Since 2018, the share of Nigerians living below the national poverty line is estimated to have risen sharply from 40.1 percent to 56.0 percent. Combined with population growth, this means that some 129 million Nigerians are living in poverty.

“This stark increase partly reflects Nigeria's beleaguered growth record. Real GDP per capita has not recovered to the level it was at prior to the oil price- induced recession in 2016.”

The COVID-19 pandemic's devastating economic impact has driven a staggering rise in poverty in Nigeria, with the majority of citizens slipping below the poverty line in recent years, reports the World Bank.

According to the World Bank, the COVID-19 pandemic's aftermath has led to a significant surge in poverty in Nigeria, attributed to weakened economic growth.

“The COVID-19 pandemic compounded this drop in economic activity. Moreover, growth is failing to outpace inflation: large increases in prices across almost all goods have diminished purchasing power,” the World Bank noted.

“Multiple shocks in a context of high economic insecurity have deepened and broadened poverty, with over 115 million Nigerians estimated to have been poor in 2023.

“Since 2018/19, an additional nearly 35 million people have fallen into poverty, so that more than half of Nigerians (51.1 per cent of the population in 2023) are now estimated to live in poverty.”

Nigeria's economy has been on a rollercoaster ride since President Bola Tinubu's inauguration on May 29, 2023. The removal of petrol subsidies has led to a staggering increase in consumer goods prices over the last 16 months. Petrol prices have skyrocketed from around N200 to over N1,000, causing a ripple effect that has tripled the prices of consumer products. This drastic change has left Nigerians reeling under the weight of soaring inflation and a rapidly depreciating naira.

The situation became unbearable in August, prompting nationwide protests that lasted for about a week. Citizens took to the streets to express their frustration with the economic hardship, which has been exacerbated by the government's reforms. While the World Bank acknowledges Nigeria's efforts to stabilize its economy through macro-fiscal reforms, it also emphasizes the need for sustained support to the poor and vulnerable. The bank has approved a $2.25 billion financing package to help Nigeria achieve its economic goals, including scaling up social protection programs.