The latest Nigeria Development Update from the World Bank reveals a significant rise in poverty levels, with over 129 million Nigerians now living below the national poverty line.
According to the report, released on Thursday in Abuja, the percentage of Nigerians living in poverty has grown from 40.1% in 2018 to 56% in 2024. This alarming trend has emerged as public concerns over escalating hunger and inflation intensify, significantly affecting living standards across the country.
The report highlights the country’s economic challenges, stating: “With economic growth lagging behind inflation, poverty has increased dramatically. Since 2018, the proportion of Nigerians living below the national poverty line has surged from 40.1% to 56%.”
In combination with population growth, this rise means that approximately 129 million Nigerians are now living in poverty. This sharp increase, according to the report, reflects Nigeria’s struggles with economic growth. Real GDP per capita has yet to recover to pre-2016 levels, before the oil price-induced recession.
The report further notes that the COVID-19 pandemic exacerbated Nigeria’s already fragile economic trajectory, with inflation undermining purchasing power across various sectors. “In almost all goods, large price increases have reduced purchasing power, and growth has been unable to keep pace with inflation,” it stated.
The World Bank also identified several contributing factors to the worsening poverty situation in Nigeria, including insecurity, policy missteps, and inflation. The report estimates that over 115 million Nigerians were already living in poverty by 2023, and an additional 35 million have fallen into poverty since 2018/19. By 2023, more than half of Nigeria’s population (51.1%) was living in poverty.
A comparison of 2023 and 2024 figures shows that the number of Nigerians in poverty rose from 115 million to 129 million, with 14 million people slipping below the poverty line within a year.
The report attributes this sharp rise in poverty to factors such as inflation, weak economic management, and external shocks like natural disasters and insecurity. Other significant factors include the impact of the COVID-19 recession and the high cost of the demonetization policy in early 2023.
