The World Bank’s assessment of Nigeria’s poverty levels, presented at the recently concluded 2025 Spring Meetings of the International Monetary Fund (IMF) and World Bank in Washington, D.C., has triggered widespread concern.
The global institutions painted a bleak picture of Nigeria’s economic trajectory, downgrading its growth forecast and declaring that poverty in the country will worsen by 2027.
According to Vanguard, observers noted that Nigeria’s current economic reforms fail to foster inclusive growth, compounding the challenges facing its most vulnerable populations.
Among the highlights was a forecast that Nigeria, despite being Africa’s largest economy, is on track to become the global epicentre of extreme poverty.
The verdict emphasised structural economic weaknesses, reliance on oil, and fragile governance as contributors to the crisis.
Civil society groups react to the poverty outlook
Civil Society Organisations (CSOs) and economic observers expressed dismay at Nigeria’s performance, describing it as an embarrassment.
Speaking to Financial Vanguard, the President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dele Oye, highlighted the need for urgent short-term interventions to protect Nigeria’s vulnerable citizens.
He stressed the importance of proactive measures to mitigate the looming poverty-induced economic meltdown.
Similarly, ActionAid Nigeria (AAN) described the World Bank’s projections as unsurprising but deeply concerning.
Andrew Mamedu, the Country Director of AAN, criticised systemic failures in governance, stating, “Governance remains Nigeria’s greatest obstacle.” He pointed out the lack of accountability, ineffective public institutions, and misplaced priorities, such as budgeting billions for luxury items while the poverty rate soars.
Mamedu warned that Nigeria’s current trajectory would fuel brain drain, instability, and further economic disillusionment.
Alarming poverty statistics
The World Bank report revealed an alarming rise in poverty levels, with Nigeria hosting 15% of the world’s extremely poor population.
In 2024, over 106 million Nigerians lived below the $2.15-per-day threshold, reflecting stark inequality and income deprivation. Economic expert Deji Adeyanju noted that Nigeria’s poverty crisis is multifaceted, exacerbated by inflation, the 40% depreciation of the naira, and insecurity disrupting agricultural production in northern regions.
Weak job creation and entrepreneurial opportunities have also led to unemployment and emigration, further entrenching the crisis.
Call for inclusive economic reforms
Both experts and observers have called for bold and structural economic reforms to ensure inclusive growth. Mamedu stated, “Reforms must ensure that the most vulnerable benefit,” emphasising that rhetoric without meaningful action would only widen the gap between the rich and poor.
Adeyanju echoed similar sentiments, urging the government to focus on governance and sustainable development to reverse the downward trend.
World Bank predicts sharp poverty by 2027
Legit.ng earlier reported that the World Bank has forecasted a significant rise in poverty levels in Nigeria by 3.6% points by 2027.
The Bretton Institution disclosed this in its latest Africa’s Pulse report during the IMF and World Bank Spring Meetings held in Washington, DC.
