World Bank Reports 129 Million Nigerians In Poverty As Inflation Soars

World Bank Reports 129 Million Nigerians In Poverty As Inflation SoarsThe World Bank has issued its Nigeria Development Update report, highlighting a grim situation regarding poverty in the country, with over 129 million Nigerians now living below the national poverty line. This report, released on Thursday in Abuja, coincided with widespread concerns among Nigerians about escalating hunger and inflation rates.....KINDLY READ THE FULL STORY HERE▶

According to the report, the percentage of Nigerians living in poverty surged from 40.1% in 2018 to 56% in 2024. This alarming increase reflects Nigeria’s stagnant economic growth, with real GDP per capita failing to recover to pre-recession levels following the oil price collapse in 2016. The COVID-19 pandemic further exacerbated economic challenges, leading to diminished purchasing power due to rising prices across essential goods.

The report notes that in 2023, approximately 115 million Nigerians were considered poor, with an additional 14 million falling into poverty by 2024. The World Bank attributes this surge to inflation, ineffective economic management, and external shocks such as natural disasters and insecurity. It emphasized that high inflation is eroding purchasing power, particularly in urban areas, where poverty rates have increased significantly.

During the report’s launch, Bauchi State Governor Bala Mohammed criticized the economic reforms implemented by President Bola Tinubu’s administration, arguing they have failed to alleviate the struggles of ordinary Nigerians. In contrast, the World Bank defended these reforms as necessary for long-term stability, despite their immediate hardships.

Governor Mohammed also highlighted the financial strains on state governments, calling for more effective economic policies and better budget management to address rising hardship among citizens. He stated that inflation is undermining state revenue and urged a reevaluation of current policies.

The World Bank’s lead economist for Nigeria, Alex Sienaert, noted that simply increasing the minimum wage would not substantially reduce poverty, as many jobs are not sufficiently productive or well-paying. He stressed the need for more productive employment to genuinely address poverty levels.

Despite the challenges, the Minister of Finance, Wale Edun, expressed optimism about Nigeria’s economic recovery, attributing it to reforms aimed at stabilizing the economy and creating jobs. He pointed to the removal of fuel subsidies as a positive step, even as petrol prices have soared dramatically.

The report and ongoing discussions highlight the urgent need for coordinated efforts to foster economic growth and stability in Nigeria, particularly as citizens continue to grapple with rising living costs and inflation, which has seen prices increase by nearly 46% since May 2023. The situation raises concerns about potential public discontent and its implications for political stability in the near future.

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