The World Bank has warned that despite Nigeria’s recent economic stabilisation measures, an estimated 139 million Nigerians now live in poverty, underscoring the urgent need to ensure that ongoing reforms translate into tangible improvements in citizens’ welfare.
The Country Director for Nigeria, Mr Mathew Verghis, made this known on Wednesday in Abuja during the launch of the October 2025 edition of the Nigeria Development Update (NDU) themed “From Policy to People: Bringing the Reform Gains Home.” The biannual report assesses Nigeria’s economic performance, policy outcomes, and development challenges.
Verghis, who assumed office three months ago, lauded Nigeria’s bold policy actions, particularly the removal of petrol subsidies and the unification of the exchange rate, describing them as “foundational reforms” capable of reshaping the nation’s long-term economic prospects.
“Over the last two years, Nigeria has commendably implemented bold reforms, notably around the exchange rate and the petrol subsidy. These are the foundations on which the country can transform its economic trajectory,” he said, drawing parallels between Nigeria’s reform moment and India’s landmark policy shifts of the early 1990s.
According to him, the reforms have already produced encouraging results — stronger revenue performance, stabilised foreign exchange markets, rising reserves, and gradual moderation of inflation. “These are big achievements, and many countries would envy them,” he noted.
However, Verghis cautioned that these macroeconomic gains have yet to improve living standards for millions of Nigerians. “Despite these stabilisation gains, many households are still struggling with eroded purchasing power. In 2025, we estimate that 139 million Nigerians live in poverty,” he said.
The figure marks a steep rise from 129 million in April 2025 and 87 million in 2023, highlighting the deepening hardship facing many households despite reform progress.
The report identifies three urgent priorities to ensure reform gains reach ordinary Nigerians: reducing inflation, using public resources more effectively, and expanding social protection for the poor and vulnerable.
Verghis stressed that addressing food inflation should be central to Nigeria’s policy response. “Persistent differences between Nigeria’s inflation rate and those of its trading partners will pressure the exchange rate and create a vicious cycle. Lower inflation will also allow interest rates to come down and support growth,” he said.
While acknowledging the Central Bank of Nigeria’s tight monetary stance and the government’s fiscal restraint, the World Bank noted that these measures alone were insufficient to curb inflation rapidly. It called for structural reforms to tackle inefficiencies in food production, distribution, and markets.
The Bank also urged the Nigerian government to strengthen public financial management and ensure that every naira spent delivers measurable development outcomes. Expanding social safety nets, it said, was essential to shield the poorest citizens from the impact of economic adjustments.
“The challenge is clear: to translate the gains from stabilisation reforms into better living standards for all. These are not abstract ideas but practical steps that can turn macro stability into better livelihoods,” Verghis concluded.
The event brought together senior government officials, private sector leaders, development partners, and civil society representatives for discussions on Nigeria’s economic outlook. The World Bank reaffirmed its commitment to supporting Nigeria’s reform agenda through technical assistance, policy advice, and financing, emphasising that sustained political will remains vital to achieving inclusive growth.
