140 Million Nigerians Poor Despite Economic Growth — World Bank

Despite signs of easing inflation and improving macroeconomic indicators, about 140 million Nigerians remained trapped in poverty in 2025, according to the World Bank.

The figure represents 63 per cent of the population, up from 61 per cent in 2024 and 56 per cent in 2023, the bank said in its latest Nigeria Development Update released in Abuja.

The report highlights a growing disconnect between economic recovery signals and the realities faced by households, noting that recent improvements have yet to translate into better living conditions for most Nigerians.

While data from the National Bureau of Statistics show inflation dropped significantly from 34.80 per cent in December 2024 to 15.15 per cent in December 2025 many households continue to struggle under the weight of earlier price surges.

Food inflation also declined sharply within the same period, but the World Bank said the relief has been insufficient to restore lost purchasing power.

“Household incomes have not grown fast enough to offset still-elevated inflation, and poverty has yet to begin declining,” the report stated.

According to the bank, the lingering effects of previous inflation spikes have already weakened real incomes, leaving millions worse off even as prices begin to stabilise.

It further pointed to global pressures, including the Middle East conflict, which have continued to push up the cost of energy, food, and transportation, disproportionately affecting low-income households.

Beyond inflation, the report stressed that Nigeria’s growth pattern remains uneven, with expansion concentrated in services and industry, while agriculture employing a large share of the poor has seen slower progress.

“Growth in the agriculture sector… has lagged services and industry, constraining the pace of poverty reduction,” it noted.

The imbalance, the bank said, has limited income opportunities for vulnerable groups and slowed the broader impact of economic growth on poverty reduction.

The World Bank projected a modest improvement, estimating that poverty could decline to about 59 per cent by 2028 as inflation continues to ease and economic stability improves.

However, it warned that progress will likely be gradual due to weak job creation, low agricultural productivity, and persistent inequality, emphasising the need for inclusive, job-driven growth.

The report also underscored the long-term implications, linking widespread poverty to poor outcomes in nutrition, health, and early childhood development, which continue to reinforce inequality across generations.