Nigeria’s Economic Growth Remains Fragile Without Targeted Poverty Reduction Policies — World Bank
Nigeria’s recent economic recovery remains fragile and may fail to improve living standards unless deliberate policies are introduced to tackle poverty, the World Bank has warned. Despite signs of macroeconomic stabilization, the institution says growth alone will not translate into meaningful welfare gains for millions of Nigerians without focused intervention.
Speaking at the Nigeria Economic Summit Group (NESG) 2026 Macroeconomic Outlook presentation in Lagos, the World Bank’s Senior Economist for Nigeria, Dr. Samer Matta, stressed that macroeconomic stability is only a first step. “Growth is welcome, but if it does not reach the poorest, it will be meaningless,” she said during a panel discussion at the event.
The World Bank identified persistent inflation, weak competition in key markets, and uneven fiscal spending across states as major obstacles preventing economic gains from reaching households. Matta noted that although subnational governments now control significant revenues, spending often fails to reflect citizens’ priorities, particularly in education, healthcare, and social protection.
According to the World Bank, reducing inflation, improving the quality of public spending, and strengthening social protection programmes are essential to closing the gap between economic recovery and household welfare. Matta added that structural reforms, including support for private sector-led growth and improved domestic savings, are critical to sustaining economic consolidation beyond short-term gains.
The institution also cautioned that the approaching election year could threaten progress if fiscal discipline weakens. Matta warned that complacency could erode recent macroeconomic gains, stressing that investments in human capital—such as early childhood education, primary healthcare, and vocational training—are vital to unlocking Nigeria’s demographic potential and ensuring inclusive, long-term growth.
source: vanguard