The World Bank has thrown another hard truth at Nigeria, revealing that 129 million citizens are now living in poverty. The Nigeria Development Update report, released Thursday in Abuja, paints a bleak picture as inflation skyrockets and millions of Nigerians struggle to afford basic needs.
So, how did we get here? According to the World Bank, poverty levels in Nigeria have spiked from 40.1% in 2018 to 56% in 2024. That’s right, more than half of the population is living below the national poverty line. But should we really be surprised? After years of weak economic growth, a pandemic, and a government that can’t seem to get its act together, what else could we expect?
The report bluntly states that, “With growth proving too slow to outpace inflation, poverty has risen sharply.” In simpler terms, Nigeria’s economy isn’t growing fast enough to keep up with the cost of living, and people are getting poorer by the day. The situation has been compounded by the COVID-19 pandemic and persistent inflation that has eaten away at Nigerians’ purchasing power. Add population growth to the mix, and the result is grim: 129 million Nigerians now trapped in poverty.
This isn’t just an unfortunate coincidence, it’s the direct result of years of poor economic management and policy missteps. Real GDP per capita hasn’t recovered since the 2016 oil price crash, and inflation has continued to wreak havoc on households. The report highlights that “large increases in prices across almost all goods have diminished purchasing power,” especially for urban dwellers, who are seeing their wallets shrink faster than ever.
As if that wasn’t enough bad news, the report goes on to say that the number of poor Nigerians jumped from 115 million in 2023 to 129 million in 2024.
The World Bank listed the culprits behind this surge: inflation, external shocks, and poor governance. Flooding, growing insecurity, and the demonetization policy in early 2023 only added fuel to the fire. Inflation has been particularly brutal, eroding what little purchasing power most Nigerians had left.
The report further notes that poverty isn’t just a rural issue anymore. Urban poverty has surged, with 31.3% of city dwellers now living in poverty compared to 18% in 2018. Being employed is no longer a guarantee of escaping poverty. The jobs that are available simply aren’t productive or well-paying enough to lift people out of poverty.
The World Bank’s lead economist for Nigeria, Marco Hernandez, tried to dismiss claims that the institution is out to keep Nigeria dependent on foreign loans. Nigeria’s fiscal mismanagement means the country will likely remain on a borrowing spree for years to come. Hernandez did, however, commend the government’s recent efforts to shrink the fiscal deficit from 6.2% of GDP in 2022 to 4.4% in the first half of 2023, largely due to reforms like the removal of FX and fuel subsidies.
Still, there’s a long way to go. The World Bank Country Director for Nigeria, Dr. Ndiame Diop, warned that reversing these reforms would be a recipe for disaster. And honestly, given Nigeria’s track record with economic policies, you can almost bet that disaster is lurking around the corner.
But the World Bank isn’t done with Nigeria yet. Diop confirmed that they are willing to offer more loans and technical assistance to support ongoing reforms. More loans?
Meanwhile, inflation continues its relentless march upwards. According to the National Bureau of Statistics, inflation jumped from 22.41% in May 2023 to 32.70% by September 2024, with no sign of slowing down. In the last 13 months alone, inflation has been on a non-stop rise, thanks to factors like the removal of fuel subsidies, which have driven up transportation and production costs.
The cost of basic commodities has risen by an average of 45.92%, leaving ordinary Nigerians struggling to afford food, energy, and other essential goods. And yet, the government continues to paint a rosy picture of reform while millions of its citizens slip further into poverty.
So, where do we go from here? Nigerians are left to wonder how much worse things can get before real change happens. Let’s hope that question doesn’t take another 14 million people falling into poverty to answer.
