Panic Over World Bank’s 56% Poverty Surge Forecast in Nigeria: Urgent Calls for Action
A recent warning from the World Bank has sparked widespread concern about a projected 56% increase in poverty rates in Nigeria by 2027. Currently, around 104 million Nigerians, or 47% of the population, live below the poverty line, a significant rise from 40% in 2018. This trend is attributed to slow economic growth, high inflation, and increasing rural-urban disparities, with rural poverty rising from 67 million to 84 million, while urban poverty increased from 13 million to 20 million people. The World Bank’s forecast indicates that without intervention, poverty will continue to climb in the coming years.
In response to the World Bank’s forecast, economic organizations such as the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and the Organized Private Sector of Nigeria (OPSN) have called for urgent measures to counter the looming crisis. NACCIMA President Dele Oye has outlined a 13-point plan to address the immediate threat, focusing on targeted economic stimulus packages, agricultural investment, access to microfinance, tax incentives, and robust vocational training programs. These measures are aimed at helping the most vulnerable populations, particularly those in rural areas and small businesses, to combat the worsening poverty situation.
Oye emphasized the importance of improving the agricultural sector, given its critical role in the livelihoods of millions of Nigerians. He proposed subsidies for inputs, long-term credit access, and vocational training to boost food security and create sustainable employment. Additionally, expanding access to microfinance for small businesses and cooperatives, particularly those led by women and youth, is seen as crucial in alleviating poverty and addressing the outflow of young people seeking opportunities abroad, known as the “Japa Syndrome.” NACCIMA also called for strengthening infrastructure in rural areas to enhance market access and increase income potential.
The NACCIMA President also highlighted the necessity of improving Nigeria’s debt management, as the country’s public debt surged to N144.67 trillion by the end of 2024, posing challenges for debt sustainability. He warned that Nigeria requires a minimum annual economic growth rate of 7% to reduce poverty effectively. Oye urged the government to act quickly, implementing both immediate relief measures and long-term plans, with an emphasis on collaborating with all stakeholders, including the private sector, to foster sustainable economic growth and improve the lives of Nigerians.
Source: The sun