Nigeria Poverty Rate Hits 63% in 2025 Despite Inflation Slowdown – World Bank Report Raises Economic Concerns

Nigeria’s poverty rate climbed to 63% in 2025, even as inflation showed signs of easing, according to a new World Bank report. The findings highlight a widening gap between macroeconomic improvements and the real living conditions of households across the country.

The report, contained in the Nigeria Development Update titled “Nigeria’s Tomorrow Must Start Today: The Case for Early Childhood Development,” revealed that poverty rose steadily from 56% in 2023 to 61% in 2024, before reaching 63% in 2025. This translates to roughly 140 million Nigerians now living below the poverty line.

According to the World Bank, the main issue is that household incomes have not increased fast enough to match previous inflation shocks. Although inflation has recently slowed, the damage to purchasing power has already been done, limiting any meaningful improvement in welfare conditions for many families.

The report also pointed to deeper structural challenges in the economy, noting that growth has been concentrated in services and industry, while agriculture—where most low-income Nigerians work—has lagged behind. This imbalance has weakened the link between economic growth and poverty reduction, leaving many households behind.

Looking ahead, the World Bank expects poverty to gradually decline from 2026 if inflation continues to ease and macroeconomic stability improves, potentially falling to about 59% by 2028. However, it warned that without stronger job creation, improved agricultural productivity, and targeted social reforms, poverty reduction will remain slow and uneven across the country.

source: nairametrics