The World Bank has raised the alarm over Nigeria’s growing poverty crisis, warning that the government’s recent economic reforms — though commendable — risk losing momentum if they fail to deliver visible relief for ordinary citizens.
According to the Bank’s latest Nigeria Development Update (NDU) released on Wednesday in Abuja, an estimated 139 million Nigerians — more than half of the population — now live below the poverty line. The report, titled “From Policy to People: Bringing the Reform Gains Home,” urges the government to ensure that economic stabilisation efforts translate into tangible improvements in living standards.
World Bank Country Director for Nigeria, Mathew Verghis, delivering his first NDU launch address since assuming office three months ago, commended Nigeria’s decision to unify exchange rates and end the costly petrol subsidy — reforms he described as “foundational” for rebuilding economic stability.
“Over the last two years, Nigeria has taken bold steps that could reset its economic future,” Verghis said. “But for these gains to matter, they must reach households whose livelihoods have been crushed by inflation and falling incomes.”
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The report draws a parallel between Nigeria’s reform moment and the sweeping policy overhauls in India during the early 1990s — moments, Verghis said, that nations rarely get twice.
While the Bank acknowledged early signs of recovery — including improved revenue, stabilising foreign reserves, and modest easing of inflation — it cautioned that these macroeconomic metrics have not yet filtered into the daily realities of most Nigerians.
“Despite stabilisation gains, many families are still grappling with eroded purchasing power,” Verghis noted, adding that poverty has continued to climb since 2019, accelerated first by COVID-19 and later by inflationary shocks linked to subsidy removal.
Data from the NDU show a worrying trend: Nigeria’s poor population rose from 87 million in 2023 to 129 million in April 2025, and now 139 million by October — signalling that reform dividends remain unevenly distributed.
The report identifies three urgent priorities to reverse the slide: curbing inflation, optimising public spending, and expanding social protection to cushion the most vulnerable.
Food inflation, in particular, remains the most destabilising force. “High food prices hurt everyone, especially the poor,” Verghis warned. “If inflation stays elevated, it will undercut public confidence in reforms and trap the economy in a vicious cycle of exchange rate pressure and low growth.”
He urged the Nigerian government to act quickly, saying the credibility of its reform programme — and the hope it has stirred among citizens and investors alike — depends on whether Nigerians begin to feel the difference in their pockets.