World Bank: Nigeria’s Poverty Rises to 63% Despite Easing Inflation – THIS END

By Ayo Kehinde

According to the World Bank, Nigeria’s poverty rate rose to 63% in 2025, despite a notable slowdown in inflation, underscoring the limited impact of macroeconomic improvements on household well-being.

The data was published in the Nigeria Development Update (April 2026) titled “Nigeria’s Tomorrow Must Start Today: The Case for Early Childhood Development”, published in Abuja. The report shows a steady increase in poverty levels, from 56% in 2023 to 61% in 2024, and now to 63% in 2025, equivalent to approximately 140 million Nigerians living below the poverty line.

According to the report, household incomes have not grown fast enough to offset the lingering effects of previously high inflation. Although inflation has begun to decline, its cumulative impact continues to erode purchasing power, leaving many Nigerians worse off. External pressures, including global conflicts affecting energy and food prices, have further strained living conditions.

One of the main concerns highlighted is the uneven nature of economic growth. While sectors such as services and industry have expanded, agriculture, where most of the poor work, has lagged behind. This imbalance has weakened the link between economic growth and poverty reduction, limiting income gains among vulnerable populations.

The World Bank projects a gradual decline in poverty starting in 2026, with rates expected to fall to around 59% by 2028 as inflation stabilizes and growth improves. However, it warns that progress will remain slow without increased job creation, improved agricultural productivity and reforms aimed at supporting broad-based, inclusive economic growth.