Nigeria’s poverty crisis deepens as 140 million struggle despite easing inflation
Poverty in Nigeria deepened sharply to 63 per cent in 2025, affecting an estimated 140 million people, even as inflation began to slow, highlighting a widening gap between macroeconomic gains and the lived realities of households, according to the World Bank.
Poverty in Nigeria deepened sharply to 63 per cent in 2025, affecting an estimated 140 million people, even as inflation began to slow, highlighting a widening gap between macroeconomic gains and the lived realities of households, according to the World Bank.
The alarming figure was disclosed in the Bank’s latest Nigeria Development Update (April 2026), titled “Nigeria’s Tomorrow Must Start Today: The Case for Early Childhood Development”, unveiled in Abuja on Tuesday. The report paints a sobering picture of worsening living conditions, despite signs of stability in key economic indicators.
According to the report, poverty levels have steadily climbed over the past three years, rising from 56 per cent in 2023 to 61 per cent in 2024, before peaking at 63 per cent in 2025. This upward trajectory underscores the persistent vulnerability of millions of Nigerians, particularly in the face of structural economic challenges, weak income growth, and uneven distribution of economic gains.
The World Bank noted that while inflationary pressures began to ease during the period under review, the decline did not translate into improved purchasing power or higher real incomes for most citizens. Instead, households continued to grapple with high living costs, stagnant wages, and limited access to economic opportunities.
“This trend reflects a disconnect between macroeconomic stabilisation and improvements in household welfare,” the report stated, warning that the benefits of policy reforms and fiscal adjustments have yet to reach the majority of Nigerians.
Analysts say the findings highlight deeper structural issues within the economy, including low productivity, high unemployment, and inadequate social safety nets. Despite recent policy efforts aimed at stabilising the naira, boosting government revenues, and curbing inflation, the impact has largely remained at the macro level, with minimal trickle-down effect on ordinary citizens.
The report further emphasised that children are among the most affected by the rising poverty levels, with long-term implications for human capital development. It called for urgent investment in early childhood development, nutrition, healthcare, and education as a pathway to breaking the cycle of poverty.
“Without targeted interventions, the current trajectory risks entrenching intergenerational poverty,” the Bank warned, stressing that early investment in children yields some of the highest economic and social returns.
The World Bank also urged the Nigerian government to strengthen social protection systems, expand cash transfer programmes, and prioritise inclusive growth policies that directly impact low-income households. It noted that while macroeconomic reforms are necessary, they must be complemented by measures that address inequality and improve livelihoods.
The report comes at a time when Nigeria is implementing sweeping economic reforms, including subsidy removals and exchange rate unification policies that have drawn mixed reactions due to their short-term impact on living standards.
As policymakers push for economic recovery and stability, the World Bank’s findings serve as a clear signal that growth without inclusion may deepen hardship rather than alleviate it.
