World Bank Says 79% of Nigerians Remain Poor or Vulnerable Despite Reforms

The World Bank says about 79 per cent of Nigerians remain poor or vulnerable to falling into poverty despite nearly three years of economic reforms by the Federal Government.

The assessment is contained in the Bank’s newly approved Country Partnership Framework (2026–2032) and Streamlined Country Diagnostic, which outline a seven-year strategy to support private sector-led growth, job creation and poverty reduction in Nigeria.

According to the report, 33 per cent of Nigerians are classified as ultra-poor, while 61 per cent live below the national poverty line. It estimates that about 139 million people are living in poverty, with the highest concentration in northern Nigeria.

The World Bank acknowledged that reforms introduced by the Tinubu administration, including the removal of petrol subsidies, exchange rate liberalisation, tighter monetary policy and tax reforms, have helped stabilise the economy.

It said economic growth increased from 3.5 per cent in the first half of 2024 to 3.9 per cent during the same period in 2025, while foreign reserves exceeded $42 billion and investor confidence improved.

However, it noted that the gains have yet to translate into improved living standards for most Nigerians, warning that inflation continues to erode household incomes, particularly among low-income families.

The report identified job creation as the most effective pathway out of poverty, noting that between three and four million young Nigerians enter the labour market each year with limited employment opportunities.

It added that only about 14 per cent of employed Nigerians work in regular wage-paying jobs, with most engaged in low-paying informal employment.

The Bank also highlighted major development challenges, including limited electricity access for more than 86 million Nigerians, weak policy coordination, institutional shortcomings and inadequate budget transparency.

It called for sustained macroeconomic, fiscal and structural reforms, alongside increased investment in labour-intensive sectors such as agriculture and micro, small and medium enterprises, to generate jobs and improve living standards.

The World Bank further urged stronger social protection measures, saying expanded support for vulnerable households would be essential to reducing poverty and strengthening economic resilience.