By Ayo Kehinde
Nigeria’s poverty rate rose to 63 percent in 2025, despite a noticeable slowdown in inflation, underscoring the limited impact of macroeconomic improvements on household welfare, according to the World Bank.
The figures were published in the Nigeria Development Update (April 2026) titled “Nigeria’s Tomorrow Must Start Today: The Case for Early Childhood Development”, released in Abuja. The report shows a steady increase in poverty levels, from 56 percent in 2023 to 61 percent in 2024, and now 63 percent in 2025, equivalent to about 140 million Nigerians living below the poverty line.
According to the report, household incomes have not grown fast enough to offset the lingering effects of previously high inflation. Although inflation has begun to ease, its cumulative impact continues to erode purchasing power, leaving many Nigerians worse off. External pressures, including global conflicts affecting energy and food prices, have further strained living conditions.
A key concern highlighted is the uneven nature of economic growth. While sectors such as services and industry have expanded, agriculture, where a large share of the poor are employed, has lagged behind. This imbalance has weakened the link between economic growth and poverty reduction, limiting income gains among vulnerable populations.
The World Bank projects a gradual decline in poverty beginning in 2026, with rates expected to fall to around 59 percent by 2028 as inflation stabilises and growth improves. However, it warns that progress will remain slow without stronger job creation, improved agricultural productivity, and targeted reforms to support inclusive, broad-based economic growth.
