By Joy Yesufu
The World Bank has raised concern that despite Nigeria’s recent economic reforms and early signs of macroeconomic stability, about 139 million Nigerians are now living in poverty — the highest figure in the nation’s history.
The revelation was contained in the Bank’s October 2025 Nigeria Development Update (NDU), titled “From Policy to People: Bringing the Reform Gains Home,” launched on Wednesday in Abuja.
Speaking at the event, Mathew Verghis, the World Bank Country Director for Nigeria, commended the government’s bold steps to unify the exchange rate and remove the petrol subsidy, describing them as “foundational reforms capable of reshaping Nigeria’s long-term economic trajectory.”
“Over the last two years, Nigeria has implemented commendable reforms around the exchange rate and petrol subsidy. These are the foundations for a transformation that can change the country’s economic future,” Verghis said.
He compared Nigeria’s current policy moment to India’s landmark reforms of the early 1990s, warning that such windows of opportunity are rare and must be seized decisively.
According to the report, the reforms have already started to yield measurable results — with growth recovering, government revenues rising, debt indicators improving, and foreign reserves climbing. Inflation, it added, has begun to ease modestly.
“These are significant achievements, and many countries would envy them,” Verghis said. “But they are not yet translating into improved living conditions for most Nigerians.”
The World Bank estimates that 139 million Nigerians now live below the poverty line — up from 129 million in April 2025 and 87 million in 2023 — reflecting worsening household welfare despite ongoing economic adjustments.
The report attributed the growing hardship to high inflation, especially food inflation, which continues to erode purchasing power and threaten the political sustainability of the reforms.
“Persistent food inflation affects everyone, particularly the poor,” the Country Director warned. “It must be addressed decisively, or it risks undermining the reform momentum.”
The World Bank identified three urgent priorities for Nigeria to consolidate reform gains and improve citizens’ welfare. These are Taming inflation, especially food prices;Enhancing the efficiency of public spending; and Expanding social protection programmes for the poor and vulnerable.
While acknowledging the Central Bank’s tighter monetary stance and the Federal Government’s fiscal restraint, the Bank stressed that monetary and fiscal tools alone cannot tackle inflation without structural reforms in food production, logistics, and markets.
The report also called for stronger public financial management systems to ensure that “every Naira spent delivers measurable development impact,” and for an expanded social safety net to cushion vulnerable households during the ongoing reform transition.
Verghis reaffirmed the World Bank’s commitment to supporting Nigeria’s reform journey through technical assistance, policy dialogue, and financing.
“The challenge now is to ensure that macroeconomic stability translates into better livelihoods. These are not abstract goals but practical steps toward inclusive growth.” he said.
The event brought together senior government officials, private sector leaders, civil society representatives, and development partners to discuss strategies for turning Nigeria’s reform gains into tangible improvements in the lives of its citizens.
