A recent report by the World Bank has painted a grim picture of the economic landscape in Nigeria, revealing that over 129 million citizens are now living in poverty.
This alarming statistic represents a dramatic increase from 40.1 percent in 2018 to 56 percent in 2024, as rising inflation and economic mismanagement plague the nation.
The report, released on Thursday in Abuja, indicates that the average price of commodities has skyrocketed by nearly 46 percent since President Bola Ahmed Tinubu took office in May 2023.
This rise in inflation has left millions struggling to afford basic necessities, further exacerbating an already critical situation. With food prices surging and the value of the Naira plummeting, many Nigerians are facing severe economic hardship.
The World Bank attributes this surge in poverty to a combination of factors, including high inflation rates, external shocks like the COVID-19 pandemic, and ongoing insecurity.
“Poverty is no longer just a rural phenomenon; urban poverty has also risen significantly,” the report highlights, noting that 31.3 percent of urban residents now live below the poverty line, up from 18 percent in 2018.
As inflation continues to rise, the cost of living has become untenable for many. Reports indicate that an estimated 14 million Nigerians fell into poverty just in the past year, highlighting the urgent need for effective economic policies.
“Multiple shocks in a context of high economic insecurity have deepened and broadened poverty,” the report states, emphasizing that a lack of productive employment is pushing families further into destitution.
Despite the dire situation, the World Bank is advocating for the Nigerian government to sustain its recent economic reforms, warning that reversing these measures could spell disaster for the nation.
“The reforms are difficult but essential for stabilizing the economy,” stated Dr. Ndiame Diop, the World Bank Country Director for Nigeria. He underscored the importance of ongoing support, both financial and technical, to help navigate this crisis.
While the government is ramping up cash transfer programs aimed at supporting vulnerable households, the path to recovery remains steep.
As inflation has continued its relentless climb—peaking at over 29 percent in early 2024—Nigerians are grappling with the harsh realities of an economy that has yet to show signs of recovery.
The World Bank’s report serves as a clarion call for urgent action, highlighting that Nigeria’s youth, the backbone of its future workforce, are particularly at risk in this economic environment.
“Jobs hold the key to sharing the proceeds of growth,” the report asserts, emphasizing the need for initiatives that harness the country’s potential demographic dividend.
As Nigeria stands at a critical juncture, the world watches closely to see whether the government can implement sustainable solutions to alleviate poverty and stabilize the economy in the face of such formidable challenges.