The World Bank has revealed that approximately 139 million Nigerians now live in poverty, despite sweeping economic reforms implemented by the Federal Government. The finding was disclosed by the Bank’s Country Director for Nigeria, Mathew Verghis, during the launch of the Nigeria Development Update (NDU) report in Abuja on Wednesday.
Titled “From Policy to People: Bringing the Reform Gains Home”, the biannual assessment acknowledges that although reforms such as the removal of petrol subsidies and unification of the exchange rate have begun to stabilise key macroeconomic indicators, millions of Nigerians have yet to experience tangible improvements in living conditions.
Reforms and Macro-Stability
According to the report:
- The reforms have led to a rise in government revenue, stabilization of foreign exchange markets, and increasing foreign reserves.
- Inflation, while still high, is showing signs of moderating.
- Other indicators such as debt metrics are improving.
The Poverty Challenge
Despite these macroeconomic gains, the report warns that many households remain trapped in hardship. Key findings include:
- An estimated 139 million Nigerians—over half the population—are living in poverty.
- The poverty escalation began around 2019, influenced by external shocks such as the COVID-19 pandemic, policy missteps, inflation, and supply disruptions.
- Poor households are especially burdened by food inflation, which has made basic food staples significantly more expensive, eroding purchasing power.
What Needs to Be Done
Verghis and other analysts emphasise that stabilisation alone will not be sufficient unless its benefits are felt by ordinary Nigerians. The report proposes a three-point agenda:
- Reduce inflation, especially food inflation, by addressing supply chain bottlenecks and improving trade policies.
- Improve efficiency in public spending so that budgetary allocations produce real development results and reach the needy.
- Expand social safety nets—such as targeted cash transfers or programmes for vulnerable households—to cushion them from economic hardship.
Outlook & Risks
While there is cautious optimism about the country’s economic trajectory, several risks remain:
- Inflation remains volatile and may respond slowly to corrective measures.
- The cost of living, especially for food and energy, continues to stretch low-income households.
- There is concern that the political and social support for reforms could weaken if ordinary Nigerians do not begin to experience relief.
Conclusion
The World Bank’s latest report makes clear that while Nigeria has made notable strides in macroeconomic reform, much remains to be done to turn policy stability into improved welfare for millions of citizens. As the country moves toward its development goals, ensuring that reforms translate into better living standards, reduced poverty, and more robust protection for the vulnerable will be central to sustainable progress.
