Poverty in Nigeria climbed to 63 per cent in 2025, despite a significant slowdown in inflation, according to a new report by the World Bank. The findings highlight a widening gap between macroeconomic improvements and the living conditions of ordinary citizens.
The data, contained in the Nigeria Development Update (April 2026), shows that poverty levels rose steadily from 56 per cent in 2023 to 61 per cent in 2024, before reaching 63 per cent in 2025 affecting an estimated 140 million Nigerians.
This increase occurred even as inflation dropped sharply. Figures from the National Bureau of Statistics indicate that headline inflation declined from 34.80 per cent in December 2024 to 15.15 per cent in December 2025. Food inflation also fell significantly during the same period.
Despite this moderation, the World Bank noted that inflation remained high enough to erode purchasing power, leaving many households worse off. It explained that income growth has not kept pace with rising costs, preventing any meaningful reduction in poverty levels.
The report further attributed worsening living conditions to earlier spikes in inflation, which had already weakened household incomes. It added that global shocks, including conflicts affecting energy and food supply chains, have continued to push up living costs, especially for low-income families.
Structural challenges within Nigeria’s economy were also identified as key factors. Growth has largely been driven by services and industry, while agriculture—where most of the poor are employed—has lagged behind. This imbalance has limited income opportunities for vulnerable populations.
Looking ahead, the World Bank projected a gradual decline in poverty from 2026, with rates expected to drop to about 59 per cent by 2028, driven by easing inflation and moderate economic growth. However, it warned that progress would remain slow without inclusive, job-creating growth.
Speaking at the report’s launch, economist Fiseha Haile stressed that sustained reduction in inflation is critical to improving welfare. Meanwhile, Finance Minister Wale Edun said the government is focusing on investment-driven growth and social protection programmes to lift millions out of poverty.
Both officials emphasised that long-term solutions must prioritise job creation, human capital development, and targeted support for vulnerable groups.
