The World Bank has warned that poverty in Nigeria will worsen over the next five years, projecting an increase of 3.6 percentage points by 2027. This alarming forecast was published in the Bank’s latest Africa Pulse Report, unveiled during the IMF and World Bank Spring Meetings in Washington, DC.
Despite some gains in Nigeria’s non-oil sector in late 2024, the World Bank highlights that structural economic challenges, heavy dependence on oil, and national fragility continue to undermine efforts to reduce poverty.
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The report paints a grim picture for resource-rich and fragile countries like Nigeria and the Democratic Republic of Congo, contrasting them with non-resource-rich African nations that are expected to make faster progress in reducing poverty.
“Poverty in resource-rich, fragile countries—including large economies like Nigeria—is projected to increase by 3.6 percentage points between 2022 and 2027,” the report stated.
Nigeria’s Position in Global Poverty Stats
According to the report:
- Sub-Saharan Africa remains home to the highest global extreme poverty rate.
- As of 2024, 80% of the world’s 695 million extreme poor reside in Sub-Saharan Africa.
- Nearly half of the region’s 560 million extreme poor are concentrated in just four countries, including Nigeria.
In comparison:
- South Asia houses 8% of the world’s extreme poor,
- East Asia and the Pacific 2%,
- Middle East and North Africa 5%,
- Latin America and the Caribbean 3%.
The report attributes the worsening situation in Nigeria to volatile oil prices, weak fiscal systems, and lack of investment in long-term economic diversification.
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World Bank Recommendations for Nigeria
To reverse the trend, the World Bank advises Nigeria to:
- Strengthen fiscal management,
- Improve governance,
- Build a stronger fiscal contract between the government and citizens.
- Focus on inclusive economic development beyond the oil sector.
Without bold reforms, the Bank warns, Nigeria will continue to struggle with rising poverty, despite growth in other areas of the economy.
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