Nigeria’s poverty rate rose to 63 per cent in 2025, despite a significant decline in inflation, highlighting the limited impact of recent macroeconomic improvements on household welfare, the World Bank has said.
The development was disclosed in the bank’s April 2026 Nigeria Development Update, which showed that poverty increased from 56 per cent in 2023 to 61 per cent in 2024, before rising further to 63 per cent in 2025—affecting an estimated 140 million Nigerians.
This trend occurred even as inflation moderated sharply, with headline inflation dropping from 34.80 per cent in December 2024 to 15.15 per cent in December 2025, while food inflation also declined significantly during the same period.
The World Bank, however, noted that although inflation eased, it remained high enough to erode purchasing power, with household incomes failing to grow at a pace sufficient to offset rising living costs.
According to the report, the persistence of poverty reflects the cumulative effects of earlier inflation spikes, which had already weakened real incomes before the recent moderation in prices.
It also pointed to global pressures, including geopolitical tensions, as factors contributing to increased costs of food, energy and transportation, further worsening living conditions for low-income households.
The bank added that Nigeria’s growth pattern has not been inclusive, noting that expansion has been driven largely by services and industry, while agriculture—which employs a significant share of the poor—has lagged behind.
It projected that poverty levels may begin to decline gradually from 2026 as inflation continues to ease, with the rate expected to drop to about 59 per cent by 2028.
However, it warned that progress would likely be slow due to structural challenges such as weak job creation, low agricultural productivity and persistent inequality.
The World Bank emphasised that sustainable poverty reduction would require inclusive growth, stronger job creation and targeted reforms to improve livelihoods, particularly for vulnerable populations.
