By Uthman Salaudeen
Poverty in Nigeria rose to 63 per cent in 2025, despite a slowdown in inflation, highlighting the limited impact of recent macroeconomic gains on household welfare, the World Bank has said.
The bank disclosed this in its Nigeria Development Update (April 2026) titled “Nigeria’s Tomorrow Must Start Today: The Case for Early Childhood Development,” released in Abuja.
According to the report, poverty levels climbed from 56 per cent in 2023 to 61 per cent in 2024, before rising to 63 per cent in 2025—representing about 140 million Nigerians.
The World Bank noted that the increase came even as inflation showed signs of easing. Data from the National Bureau of Statistics indicated that headline inflation dropped from 34.80 per cent in December 2024 to 15.15 per cent in December 2025, while food inflation declined from 39.84 per cent to 10.84 per cent within the same period.
Despite this, the bank warned that the improvement has not translated into better living conditions.
“Household incomes have not grown fast enough to offset still-elevated inflation, and poverty has yet to begin declining,” the report stated.
It explained that earlier spikes in inflation had already eroded real incomes, leaving many households vulnerable even as prices begin to stabilise.
The report also pointed to global pressures, including tensions in the Middle East, as factors driving up energy, food and transport costs, further straining low-income households.
Beyond inflation, the World Bank identified structural challenges, particularly the slow growth of the agricultural sector, where a large share of poor Nigerians are employed.
“Growth in the agriculture sector… has lagged services and industry, constraining the pace of poverty reduction,” it said.
Looking ahead, the bank projected a gradual decline in poverty from 2026, with rates expected to fall to about 59 per cent by 2028, driven by easing inflation and moderate economic growth.
However, it cautioned that progress would remain slow without stronger job creation, improved agricultural productivity and more inclusive growth.
The report also linked rising poverty to broader human capital challenges, noting that poorer households face worse outcomes in nutrition, health and early childhood development, reinforcing long-term inequality.
