The World Bank has raised alarm that about 139 million Nigerians are currently living in poverty despite recent economic reforms, warning that the country risks losing hard-won gains if they do not translate into better living conditions for citizens.
The bank’s Country Director for Nigeria, Mathew Verghis, made this known on Wednesday in Abuja during the launch of the October 2025 Nigeria Development Update (NDU) report titled “From Policy to People: Bringing the Reform Gains Home.”
The biannual NDU report reviews Nigeria’s key economic indicators, reform outcomes, and major challenges. It highlights that while macroeconomic stability is improving, poverty and hardship among citizens continue to rise sharply.
Verghis praised the Nigerian government for implementing bold reforms in the exchange rate system and the petroleum subsidy regime, calling them “foundational steps” that could transform the economy’s long-term trajectory.
“Over the last two years, Nigeria has commendably implemented reforms that lay the foundation for a new economic direction,” he said.
“These measures are beginning to yield positive results growth is recovering, revenue has increased, and inflation is gradually easing.”
He compared Nigeria’s reform phase to India’s policy shift in the early 1990s, stressing that the country must seize this rare opportunity to ensure that the gains reach ordinary citizens.
Despite progress in macroeconomic stabilization, Verghis cautioned that most Nigerians have yet to feel any improvement in their daily lives.
“Many households are still battling eroded purchasing power,” he stated. “Poverty, which began to rise in 2019 due to policy missteps and shocks like COVID-19, has continued to grow. In 2025, we estimate that 139 million Nigerians live in poverty.”
This figure represents a significant jump from 129 million in April 2025 and 87 million in 2023, underscoring the worsening hardship faced by millions of families across the country.
The World Bank outlined three key priorities for Nigeria to convert its reform progress into tangible welfare improvements: reducing inflation, using public funds more efficiently, and expanding social protection for vulnerable citizens.
Verghis emphasized that tackling food inflation should be the central focus of Nigeria’s economic policy, warning that high food prices could undermine public support for ongoing reforms.
“Food inflation affects everyone, especially the poor,” he said.
“Persistently high prices could pressure the exchange rate and create a cycle of instability. Lower inflation will support growth and reduce interest rates.”
He also called for complementary structural reforms in agriculture and markets to fix deep-rooted inefficiencies that keep food prices high.
The World Bank urged the government to strengthen public financial management systems and ensure that every naira spent delivers measurable development results.
It also recommended expanding the national social safety net to protect the poorest households from the impacts of economic adjustments.
Verghis reaffirmed the bank’s commitment to supporting Nigeria through policy advice, financing, and technical assistance, but stressed that real progress depends on strong political will and inclusive governance.
“The challenge is clear: to turn macroeconomic gains into better livelihoods for all Nigerians,” he concluded.
The NDU event brought together government officials, private sector leaders, civil society, and development partners, who agreed that while Nigeria’s reform path shows promise, ensuring that benefits reach the people remains the true measure of success.
