The World Bank has called on the Nigerian government to prioritize reforms aimed at protecting the country’s poorest citizens from the adverse effects of rising inflation, while also fostering more productive employment opportunities to lift millions out of poverty.
In its April 2025 Poverty and Equity Brief for Nigeria, the World Bank warned that poverty levels in the country have deepened significantly, with over 42 million additional Nigerians falling into poverty since 2018/19. The report estimates that 54% of the population now lives in poverty.
Although recent macroeconomic reforms—such as the removal of fuel subsidies and the unification of exchange rates—have begun to stabilize the Nigerian economy, they have also triggered inflationary pressures that are squeezing household incomes. The bank noted that inflation remains elevated, with Nigeria’s annual inflation rate rising to 24.23% in March 2025, up from 23.18% in February.
Food inflation eased slightly to 21.79% from 23.51% the previous month, while core inflation (excluding food and energy prices) jumped to 24.43%. Monthly consumer prices surged by 3.90% in March—nearly doubling the 2.04% increase recorded in February.
The World Bank acknowledged the government’s efforts to mitigate the impact of reforms through temporary cash transfers targeting 15 million vulnerable households. However, the rollout of this social support has been slow, limiting its effectiveness.
“Multiple shocks in a context of high economic insecurity have deepened and broadened poverty,” the Bank said. “Labour incomes have not kept up with inflation, pushing many Nigerians, particularly in urban areas, into poverty.”
To reverse the trend, the World Bank recommended that Nigeria invest in a stronger social protection system focused on resilience and human capital development. It advised that fiscal savings from the fuel subsidy reforms be redirected toward education, healthcare, and infrastructure to break the cycle of poverty and reduce inequality.
“These short-term interventions need to be complemented by economic diversification that grows the non-oil sector and creates private sector jobs,” the report stated.
Citing data from the National Bureau of Statistics (NBS), the World Bank noted that before the COVID-19 pandemic, 30.9% of Nigerians lived below the international extreme poverty line of $2.15 per day (2017 PPP). It also highlighted stark regional disparities, with poverty in the northern regions at 46.5% compared to just 13.5% in the south.
The Bank concluded that improving the effectiveness of public investment is crucial, especially in a time of constrained fiscal resources, to ensure inclusive and sustainable development.
