Nigeria’s poverty rate climbed to 63 per cent in 2025, even as inflation began to slow, highlighting the limited impact of recent economic improvements on everyday living conditions, according to the World Bank.
The figures were revealed in the bank’s latest Nigeria Development Update, which showed a steady rise in poverty from 56 per cent in 2023 to 61 per cent in 2024, before reaching its current level. This means about 140 million Nigerians are now living below the poverty line.
This increase came despite a sharp drop in inflation. Data from the National Bureau of Statistics shows that headline inflation fell from 34.80 per cent in December 2024 to 15.15 per cent in December 2025, while food inflation also dropped significantly within the same period.
However, the World Bank explained that the decline in inflation has not been enough to improve living standards. According to the report, household incomes have not grown fast enough to offset the impact of earlier price increases, which had already weakened purchasing power.
The bank noted that many families are still struggling because the earlier surge in food and transport costs had long-term effects on their finances. Global factors, including tensions in the Middle East, also contributed to rising living costs, especially for low-income households.
Another key issue identified is the structure of Nigeria’s economic growth. While sectors like services and industry have expanded, agriculture—where most of the poor are employed—has lagged behind, limiting income growth among vulnerable populations.
Despite the current situation, the World Bank projects that poverty levels may begin to decline gradually from 2026, potentially dropping to about 59 per cent by 2028. This improvement is expected to be driven by lower inflation and modest economic growth.
However, the bank warned that progress would remain slow unless deeper structural issues are addressed, including weak job creation, low agricultural productivity, and inequality. It stressed that economic growth must be more inclusive and focused on creating jobs to significantly reduce poverty.
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Speaking at the report’s launch, the bank’s Lead Economist for Nigeria, Fiseha Haile, emphasised that controlling inflation and improving the quality of growth are critical to lifting Nigerians out of poverty.
Also, the Minister of Finance, Wale Edun, said the Federal Government is focusing on investment-driven growth and social support programmes to cushion the impact of rising living costs. He noted that targeted interventions, including direct transfers to vulnerable households, are being strengthened.
Overall, the report makes it clear: while economic indicators may be improving on paper, many Nigerians are yet to feel the difference in their daily lives.
