World Bank Says 139 Million Nigerians Still Live in Poverty Despite Reform Gains

The World Bank has revealed that about 139 million Nigerians—representing nearly 61 percent of the population—are still living in poverty despite the economic reforms introduced by the Federal Government to stabilise the economy. This was disclosed in its latest Nigeria Development Update (NDU) report titled “From Policy to People: Bringing the Reform Gains Home.”

According to the report, while Nigeria has made significant progress in implementing bold fiscal and monetary reforms, these policies have yet to translate into improved living conditions for most citizens. The World Bank stated that the number of Nigerians living below the poverty line increased from 81 million in 2019 to 129 million by April 2025, and now to an estimated 139 million.

The World Bank’s Country Director for Nigeria, Mathew Verghis, said during the report’s presentation in Abuja that the reforms—such as the removal of fuel subsidies and the unification of exchange rates—have contributed to better fiscal discipline, increased government revenue, and improved foreign exchange stability. However, he cautioned that the benefits of these reforms have not yet reached the ordinary Nigerian, particularly in terms of food prices, jobs, and general welfare.

Verghis emphasised that while macroeconomic stability is a positive step forward, the government must ensure that reform outcomes translate into tangible improvements in the lives of citizens. He noted that average household consumption declined by about 6.7 percent between 2019 and 2023, largely due to inflationary pressures, job losses, and rising living costs.

The World Bank observed that food inflation remains one of the greatest threats to Nigeria’s economic recovery and poverty reduction efforts. The report stressed that food costs have surged dramatically, pushing millions of families into hunger and malnutrition. It also highlighted that inflation in non-food items—such as housing, transportation, and education—continues to reduce purchasing power across all income levels.

To tackle these challenges, the World Bank recommended that the Nigerian government focus on three critical areas. First, it urged authorities to address inflation by enhancing food supply chains and removing barriers that hinder agricultural productivity. Second, it called for better efficiency in public spending to ensure that government resources directly impact citizens. Lastly, it encouraged the expansion of social protection programs to cushion vulnerable populations from economic shocks.

Despite the gloomy picture, the World Bank acknowledged that some reform gains have started to emerge. It cited improvements in foreign exchange liquidity, rising non-oil revenue, and renewed investor confidence as early signs of a positive turnaround. However, it warned that without deliberate efforts to distribute these gains fairly, inequality will continue to widen.

Government officials, meanwhile, have responded cautiously to the report. Some have questioned the World Bank’s data methodology, arguing that its poverty estimates may not accurately reflect the local context. They contend that poverty figures should be evaluated based on Nigeria’s specific consumption patterns and regional cost-of-living variations.

Nevertheless, economic analysts have backed the World Bank’s call for inclusive growth. They argue that while the government’s reform agenda is commendable, its success should be measured by how it improves the welfare of ordinary Nigerians, not just by macroeconomic indicators. Many experts believe that prioritising job creation, agricultural reform, and affordable energy will play a crucial role in lifting millions out of poverty.

The World Bank Country Director further urged Nigerian authorities to maintain reform momentum, stating that policy reversals could jeopardise recent macroeconomic stability. He likened Nigeria’s reform efforts to historical transitions in countries such as India and Indonesia, noting that consistency and patience are key to achieving long-term success.

He emphasised that the journey from policy stability to shared prosperity is challenging but achievable if reforms are accompanied by effective governance, transparency, and accountability. “Nigeria is at a critical turning point,” Verghis said. “Reforms must move beyond economic indicators and begin to reflect in people’s lives. The real measure of success is whether families can afford food, education, and healthcare.”

In conclusion, the World Bank’s report underscores the urgent need for Nigeria to translate macroeconomic reforms into social and economic inclusion. The Bank called for targeted investments in agriculture, manufacturing, and infrastructure to create jobs, stimulate local production, and reduce reliance on imports. It also stressed the importance of expanding digital and financial access to empower rural populations.

 

Ultimately, the World Bank believes that Nigeria’s reform progress, though commendable, must evolve into a people-centred development model. Only by bridging the gap between policy success and human welfare, it said, can Nigeria truly achieve sustainable economic growth and lift millions out of poverty.