By Our Correspondent
National News – Poverty in Nigeria surged to 63 per cent in 2025, affecting about 140 million people, according to a new report released by the World Bank in April 2026.
The report, unveiled in Abuja, revealed that the rise occurred despite a noticeable decline in inflation, raising concerns about worsening living standards and limited economic relief for citizens.
The report highlighted that poverty increased from 56 per cent in 2023 to 61 per cent in 2024, before peaking in 2025.
While inflation dropped significantly—from 34.80 per cent in late 2024 to 15.15 per cent by the end of 2025—household incomes failed to keep pace.
This disconnect explains why millions of Nigerians continue to struggle despite easing price pressures.
According to the World Bank, earlier spikes in inflation had already eroded purchasing power, leaving households vulnerable even as prices began to stabilise.
Food inflation, though reduced, still impacted low-income earners who spend a large portion of their income on basic needs.
Global factors, including geopolitical tensions in the Middle East, also contributed to higher living costs through increased energy and transport prices.
These pressures further deepened poverty levels, especially among vulnerable groups.
The report also identified structural issues in Nigeria’s economy as a major cause.
Growth has been concentrated in services and industry, while agriculture—where most poor Nigerians work—has lagged behind.
This imbalance has slowed income growth and limited poverty reduction.
Experts noted that while poverty is expected to decline gradually from 2026, progress will likely remain slow.
Projections suggest the poverty rate could drop slightly to about 59 per cent by 2028, driven by improved inflation trends and moderate economic growth.
Officials, including Finance Minister Wale Edun, emphasised the need for inclusive growth, job creation, and stronger social safety nets.
The government is also expanding targeted support through digital cash transfers to cushion economic hardship.
The World Bank stressed that sustainable poverty reduction will depend on job-rich growth, improved agricultural productivity, and investments in human capital, particularly early childhood development.
