World Bank Discloses Number of Nigerians Living in Poverty Under Tinubu Govt, Explains Reasons
- The World Bank has disclosed that Nigeria’s poverty rate rose in 2025
- The increase occurred despite a sharp decline in both headline and food inflation
- The World Bank said household incomes have not kept pace with inflation
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Poverty levels in Nigeria increased to 63 per cent in 2025, even as inflation slowed, highlighting the limited impact of recent macroeconomic improvements on household welfare, according to a new report by the World Bank.
The findings were contained in the World Bank’s Nigeria Development Update (April 2026) titled “Nigeria’s Tomorrow Must Start Today: The Case for Early Childhood Development,” released in Abuja on Tuesday.
Source: Getty Images
Poverty rate climbs despite economic changes
As reported by PUNCH, the report noted that the proportion of Nigerians living below the poverty line rose steadily from 56 per cent in 2023 to 61 per cent in 2024, and further to 63 per cent in 2025. This translates to approximately 150 million people.
The World Bank noted that the increase occurred despite a noticeable decline in inflation, suggesting that improvements in macroeconomic indicators have not yet translated into better living conditions for many Nigerians.
Inflation slows, but pressure persists
Data from the National Bureau of Statistics showed that headline inflation dropped from 34.80 per cent in December 2024 to 15.15 per cent in December 2025. Food inflation also declined significantly from 39.84 per cent to 10.84 per cent within the same period.
However, the report stated that inflation remains high enough to weaken purchasing power and affect living standards.
“Household incomes have not grown fast enough to offset still-elevated inflation, and poverty has yet to begin declining,” the World Bank said.
It added that earlier spikes in inflation had already eroded real incomes, with lingering effects still being felt despite recent moderation.
Structural challenges slow poverty reduction
Beyond inflation, the report highlighted structural issues affecting poverty reduction. It noted that economic growth has been largely driven by the services and industrial sectors, while agriculture - which employs a large share of low-income Nigerians - has lagged behind.
This imbalance, according to the bank, has limited income growth among vulnerable populations and slowed the pace at which economic growth translates into improved welfare.
Global factors, including the Middle East conflict, were also cited as contributing to higher energy, food and transport costs, further straining low-income households.
Outlook remains cautious
Looking ahead, the World Bank projected a gradual decline in poverty beginning from 2026, as inflation continues to ease and economic conditions stabilise.
Poverty is expected to drop to about 59 per cent by 2028, supported by lower food prices and moderate economic growth.
However, the bank warned that progress may remain slow due to weak job creation, low agricultural productivity and persistent inequality.
Source: Getty Images
Expert speaks on way forward
Speaking at the launch of the report, the World Bank’s Lead Economist for Nigeria, Fiseha Haile, said poverty remains high despite recent economic adjustments.
He emphasised that although inflation has declined, it still poses risks to real income growth and overall welfare. According to him, reducing poverty will depend on the quality of economic growth, particularly its ability to generate jobs and improve incomes for vulnerable groups.
Haile also stressed the importance of investing in early childhood development as a long-term strategy for boosting productivity and reducing poverty.
FG unveils plan to lift 50 million Nigerians out of poverty
Legit.ng earlier reported that the federal government has unveiled a new national framework aimed at lifting 50 million Nigerians out of poverty by 2030.
The initiative, tagged One Humanitarian, One Poverty Response System (OHOPRS), was formerly launched in March 2026, with authorities outlining a financing plan of N16 trillion for the 2026–2030 period.
The initiative will be executed through development partners, the private sector, and climate funds.
Source: Legit.ng
