The World Bank’s latest Nigeria Development Update report has painted a dire picture of the nation’s economic landscape, revealing that over 129 million Nigerians now live below the national poverty line—a dramatic spike from 40.1 percent in 2018 to a staggering 56 percent in 2024.
Published on Thursday in Abuja, the report attributes this poverty surge to a combination of factors including rising commodity prices, which have skyrocketed by 45.92 percent since the Tinubu administration took office in May 2023, alongside the compounded effects of the COVID-19 pandemic and ongoing insecurity.
The report stated, “With growth proving too slow to outpace inflation, poverty has risen sharply,” highlighting that roughly 115 million Nigerians were estimated to have been living in poverty just a year prior.
Governor Bala Mohammed of Bauchi State openly criticized the government’s economic reforms during the report’s launch.
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He suggested that the policies intended to provide relief have instead exacerbated hardship. “Nigerians are not enjoying the regime at this time,” Mohammed asserted, calling for governments at all levels to revisit their economic strategies.
“The money that we are sharing is not enough. The purchasing power has dwindled, these policies are not working,” he lamented.
The World Bank, however, defended the administration’s reforms, arguing that they are painful yet essential for the country’s long-term economic stability.
Lead economist for Nigeria, Alex Sienaert, emphasized, “The Federal Government of Nigeria increased the minimum wage, which will affect only a small share of the population. Raising the minimum wage directly affects only 4.1 percent of working-age Nigerians.”
Adding fuel to the fire, inflation rates have surged continuously for 13 months, with the headline rate escalating from 22.41 percent in May 2023 to 32.70 percent in September 2024.
Factors driving this relentless rise include the removal of fuel subsidies, which has significantly raised transportation and production costs.
As citizens contend with skyrocketing food, energy, and essential goods prices, many are being pushed to drastic measures just to make ends meet.
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Families increasingly report resorting to bartering goods and engaging in informal economic activities to survive. “The pain is much and can’t be tolerated anymore. Nigerians are suffering,” lamented Adebayo Timothy, a resident of Kubwa in Abuja.
The World Bank has warned that reversing reforms could spell disaster for Nigeria, urging the government to maintain its course.
“Reversing these reforms would be detrimental and would spell doom for Nigeria,” cautioned Dr. Ndiame Diop, World Bank Country Director for Nigeria.
Meanwhile, Finance Minister Wale Edun expressed optimism about Nigeria’s economic trajectory, citing efforts by the Central Bank of Nigeria to stabilize monetary policy.
Experts urged a united front among the government’s economic sectors. “The government must de-risk the economy to make it easy for investors to come in,” stated Amal Hassan, CEO of Outsource Global Limited.
