Cynthia Ezegwu
The World Bank has raised alarm over Nigeria’s deepening poverty levels, revealing that about 139 million Nigerians are now living in poverty despite recent economic reforms aimed at stabilising the country’s economy.
Speaking at the launch of the October 2025 Nigeria Development Update (NDU) in Abuja on Wednesday, the World Bank Country Director for Nigeria, Mathew Verghis, cautioned that the gains recorded from reforms would be short-lived if they fail to improve citizens’ welfare.
The report, titled “From Policy to People: Bringing the Reform Gains Home,” reviewed Nigeria’s recent economic performance and outlined key priorities to ensure reforms translate into tangible benefits.
Verghis, who was attending his first NDU launch since assuming office three months ago, commended the government’s bold moves in removing fuel subsidies and unifying exchange rates, describing them as “foundational steps” capable of transforming Nigeria’s economic trajectory.
“Over the last two years, Nigeria has commendably implemented bold reforms, notably around the exchange rate and the petrol subsidy. These are the foundations on which the country has the opportunity to build a programme that can transform its economic trajectory,” he said.
According to him, while the reforms have stabilised key economic indicators — including improved growth, rising revenues, stabilised foreign exchange markets, and increasing reserves — these macroeconomic improvements have yet to impact ordinary Nigerians.
“Despite these stabilisation gains, many households are still struggling with eroded purchasing power. In 2025, we estimate that 139 million Nigerians live in poverty,” Verghis stated.
The figure represents a sharp rise from 129 million in April 2025 and 87 million in 2023, reflecting worsening hardship despite ongoing reforms.
The World Bank chief highlighted three priorities to bridge the gap between policy success and people’s welfare: reducing inflation, improving public resource management, and expanding social protection coverage for vulnerable citizens.
He emphasised that food inflation must be tackled urgently to prevent reform fatigue and sustain public support.
“Persistent food inflation affects everybody, particularly the poor. If it remains high, it will erode political support for reforms and stall recovery,” he warned.
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Verghis commended the Central Bank of Nigeria’s tight monetary policy and the government’s fiscal discipline but said these measures must be complemented by structural reforms to fix inefficiencies in food production and distribution.
The report also urged Nigeria to strengthen its public financial management systems and expand its social safety nets to shield the poorest citizens from the shocks of economic adjustments.
Verghis reaffirmed the World Bank’s commitment to supporting Nigeria through policy advice, technical assistance, and financing, stressing that political will and inclusive governance would be critical to success.
“The challenge is clear: to translate the gains from the stabilisation reforms into better living standards for all. These are not abstract ideas but practical steps that can turn macro stability into better livelihoods,” he concluded.
The NDU launch brought together senior government officials, private sector leaders, development partners, and civil society representatives for an in-depth discussion on Nigeria’s economic outlook and reform path.