The World Bank has said that despite the expansion of the Nigeria’s economy and the revenue increase, poverty rate remains alarmingly high.
The Bretton Woods institution declared that 139 million Nigerians are living in poverty in 2025 despite the economic reforms embarked upon by President Bola Ahmed Tinubu.
Country Director, World Bank Nigeria, Mathew Verghis, spoke in Abuja at the launch of the Nigerian Development Update where the bank also projected that Nigeria’s economy would grow by 4.4 per cent in 2027.
The World Bank’s verdict is coming a few weeks after Tinubu praised his government for the economic rebound being witnessed in the country.
Tinubu had declared that Nigeria has “turned the corner” on its economic and social challenges, assuring citizens that the sacrifices of the past two years were beginning to yield measurable results.
During a live nationwide broadcast to commemorate Nigeria’s 65th Independence anniversary, Tinubu stressed that his administration’s reforms were already repositioning the country on the path of stability, growth and self-sufficiency.
“I am pleased to report that we have finally turned the corner. The worst is over. Yesterday’s pains are giving way to relief. I salute your endurance, support and understanding,” the president said. “I will continue to work for you and justify the confidence you reposed in me to steer the ship of our nation to a safe harbour.”
Recall that the removal of subsidy from premium motor spirit (PMS), otherwise known as petroleum, has freed more revenues to the coffers of the federal government with states also getting more allocations.
The monetary policy reforms have also seen the foreign reserves rising to over $43 billion; while the exchange rate market has stabilised. Inflation eased for the fifth consecutive month to 20.12 per cent in August.
But the World Bank’s Country Director said: “So, these results are exactly what you need to see in a stabilisation. These are big achievements. However, despite these stabilisation gains, many Nigerians are still struggling. Most households are struggling with eroded purchasing power.
“In 2025, we estimate that 139 million Nigerians live in poverty. So, the challenge is clear: how to translate the gains from the stabilisation reforms into better living standards for all.”
He stated that the federal government must reduce inflation, particularly food inflation, ensure effective use of public funds and expand safety nets, to address the high rate of poverty in the country and ensure that citizens enjoy the gains of reforms.
“Food inflation affects everybody but particularly the poor and has the potential to undermine political support for the reforms. Use public resources more effectively ensuring that spending drives real development results that benefit people and three, expanding the safety net so that the poorest and vulnerable get support,” he added.
