The World Bank’s latest Nigeria Development Update, released Thursday in Abuja, reveals that more than 129 million Nigerians are currently living in poverty. This figure marks a troubling increase from 40.1% of the population in 2018 to 56% in 2024, amid rising inflation and food insecurity.
The report highlights that slow economic growth has failed to keep pace with inflation, resulting in a sharp rise in poverty levels. Since 2018, the proportion of Nigerians living below the national poverty line has surged, exacerbated by a lack of recovery in real GDP per capita since the oil price crash in 2016.
The report states, “With growth proving too slow to outpace inflation, poverty has risen sharply. An estimated 129 million Nigerians now live in poverty, a stark increase reflecting Nigeria’s ongoing economic struggles.”
It also points out that the number of people in poverty rose from 115 million in 2023 to 129 million in 2024, indicating that about 14 million individuals have fallen below the poverty line this year alone. Factors contributing to this alarming trend include the COVID-19 pandemic, natural disasters, rising insecurity, and high inflation.
The World Bank emphasizes that the economic challenges have disproportionately affected urban areas, where the poverty rate has increased from 18% in 2018 to 31.3% today. Despite being employed, many individuals find themselves unable to escape poverty due to the lack of productive and adequately paying jobs.
In response to these findings, the Nigerian government is enhancing cash transfer programs to support vulnerable households during this crisis. The report stresses that creating jobs is crucial for leveraging Nigeria’s growing population and potential economic benefits.
Addressing concerns about the World Bank’s role, Sienaert, the lead economist at the institution, clarified that there is no agenda to keep Nigeria economically dependent. He noted improvements in Nigeria’s budget deficit, which has decreased from 6.2% of GDP in 2022 to 4.4% in the first half of 2023, attributed to the removal of fuel and foreign exchange subsidies.