139 Million Nigerians Still in Poverty Despite Government Reforms – World Bank Report

Despite significant economic reforms in recent years, an estimated 139 million Nigerians are still living in poverty in 2025, the World Bank has revealed. Speaking at the launch of the Nigerian Development Update in Abuja on Wednesday, Mathew Verghis, World Bank Country Director for Nigeria, highlighted the growing gap between policy achievements and citizens’ living conditions.

Verghis noted that while Nigeria has seen improvements in economic stability—including rising revenues, improved debt indicators, a more stable foreign exchange market, and easing inflation—these gains have not fully translated into better living standards for ordinary Nigerians. “Most households are struggling with eroded purchasing power,” he said. “The challenge is clear: how to turn stabilisation gains into improved lives for all Nigerians.”

The World Bank stressed that tackling food inflation, expanding social safety nets, and ensuring effective use of public funds are critical to alleviating poverty. Verghis explained that food price hikes disproportionately affect the poor and could threaten political support for reforms. “Spending must drive real development results, and the poorest citizens must receive the support they need to benefit from these reforms,” he added.

Samer Matta, World Bank lead economist for Nigeria, presented key findings from the report titled “From Policy to People: Bringing Reform Gains Home”. He noted that federal revenues have risen sharply in 2025, although a significant portion is spent on deductions to revenue agencies, limiting development impact. The report projects modest GDP growth of 4.4 percent by 2027, supported by stronger services, industrial recovery, and agricultural rebound, while inflation is expected to ease to 15.8 percent.

Despite these positive trends, risks remain. The World Bank cautioned that economic growth and disinflation remain vulnerable to oil price shocks, reform fatigue, election uncertainties, and climate-related events. Subnational governments have increased capital expenditure to nearly 2.7 percent of GDP, yet federal spending still allocates about 70 percent to wages and salaries, leaving limited resources for development projects. The report calls for strategic actions to ensure that economic gains benefit Nigeria’s most vulnerable citizens.

source: Business day