Nigeria's Poverty Surges to 63% Despite Falling Inflation: World Bank Report
The World Bank's Nigeria Development Update (April 2026) reveals that poverty in Nigeria climbed to 63 per cent in 2025, affecting about 140 million people. This rise occurred despite a slowdown in inflation, underscoring the limited impact of recent macroeconomic improvements on household welfare.
According to the report, the share of Nigerians living below the poverty line increased from 56 per cent in 2023 to 61 per cent in 2024, before jumping to 63 per cent in 2025. The increase highlights a disconnect between moderating prices and real income growth.
Headline inflation declined from 34.80 per cent in December 2024 to 15.15 per cent in December 2025, but the World Bank noted that inflation remained high enough to erode purchasing power and worsen living conditions.
The report identified structural constraints to poverty reduction, noting that economic growth has been driven largely by services and industry, while agriculture—where more than half of the poor are employed—has lagged behind.
Looking ahead, the World Bank projected a gradual decline in poverty from 2026 as inflation continues to ease and macroeconomic conditions stabilise. However, it warned that the pace of decline would remain slow due to weak job creation, low agricultural productivity, and persistent inequality.
The report also linked poverty to broader human capital challenges, noting that poorer households face worse outcomes in nutrition, health, and early childhood development, reinforcing long-term inequality.
World Bank's Lead Economist for Nigeria, Fiseha Haile, emphasized that reducing poverty would depend not only on economic growth but also on its quality, particularly its ability to create jobs and raise incomes among the most vulnerable.
He further stressed that investments in early childhood development are essential for long-term productivity and poverty reduction.