The World Bank has warned that poverty in Nigeria is likely to worsen by 2027 due to the country’s ongoing economic instability and over-reliance on natural resources.
According to the Bank’s latest Africa Pulse report released during the IMF/World Bank Spring Meetings in Washington DC, Nigeria is projected to see a 3.6 percentage point increase in poverty over the next five years.
The report paints a grim picture, noting that although Nigeria recorded better-than-expected economic growth in late 2024, mainly driven by non-oil sectors, deeper issues tied to its resource-dependent economy and political instability could push more Nigerians below the poverty line.
“Resource-rich and fragile countries like Nigeria and the Democratic Republic of Congo are expected to record the highest increase in poverty, with the average rate in such countries reaching 46 percent by 2024,” the report said.
The World Bank pointed out that non-resource-rich countries in the region have made stronger progress in reducing poverty, aided by rising agricultural commodity prices and improved governance structures.
Meanwhile, countries like Nigeria are being left behind due to slowing oil revenues and weak fiscal management.
In 2024, Sub-Saharan Africa accounted for 80 percent of the world’s extremely poor population, with Nigeria being one of four countries housing half of that number.
The report calls for urgent reforms in Nigeria’s fiscal policy and stronger engagement with citizens to build a more inclusive and resilient economy.
