Nigeria’s poverty rate rose to 63 per cent in 2025, with about 140 million people estimated to be living below the national poverty line, despite a significant easing in inflation, according to the World Bank’s April 2026 Nigeria Development Update.
The latest assessment shows that the share of Nigerians living in poverty increased from 56 per cent in 2023 to 61 per cent in 2024 and 63 per cent in 2025. The World Bank said the deterioration reflects the delayed impact of previous inflation shocks and the fact that household earnings have not recovered sufficiently to restore lost purchasing power.
The findings underline a difficult reality for Nigerian households: slower price increases do not necessarily mean that living standards are improving. The Brandspur Banking News Desk reports that, although inflation moderated sharply during 2025, the cumulative rise in the cost of food and other essentials continued to weigh heavily on household budgets.
Data from the National Bureau of Statistics showed headline inflation falling from 34.80 per cent in December 2024 to 15.15 per cent in December 2025, while food inflation declined from 39.84 per cent to 10.84 per cent over the same period. The statistics reflect a substantial reduction in the pace at which prices were rising, but not a reversal of the price increases already absorbed by consumers.
The World Bank said poverty is expected to begin easing from 2026 as inflation continues to moderate and economic conditions stabilise. Its projections put the poverty rate at about 59 per cent by 2028, although the decline is expected to be gradual.
Weak job creation and low agricultural productivity remain major obstacles. The bank noted that growth has been concentrated largely in services and industry, while agriculture has lagged despite employing more than half of Nigerians living in poverty. This limits the extent to which stronger economic output translates into higher incomes for vulnerable households.
The World Bank also warned that external shocks could slow the anticipated improvement. The conflict in the Middle East, for instance, has added pressure to energy, food and transport costs, creating fresh risks for households already struggling with elevated living expenses.
Beyond income and prices, the report linked persistent poverty with poorer outcomes in nutrition, healthcare and early childhood development. It argued that Nigeria’s long-term ability to reduce poverty will depend not only on maintaining macroeconomic stability but also on investing in human capital from the earliest stages of life.
World Bank Lead Economist for Nigeria, Fiseha Haile, stressed that lower inflation alone would not be enough to deliver broad-based welfare gains. The quality of economic growth, particularly its capacity to create productive jobs and raise incomes among poorer Nigerians, will determine whether recent macroeconomic improvements translate into better living conditions.
The World Bank’s April 2026 Nigeria Development Update therefore places greater emphasis on inclusive growth, agricultural productivity, employment and early childhood investment. The report says sustained progress on those fronts will be critical if Nigeria is to turn economic stabilisation into a meaningful reduction in poverty.
CIURTESY: brandspurng.com
