The World Bank has raised concerns that rising multidimensional poverty in Nigeria is undermining the country’s long-term economic prospects, particularly due to poor early childhood development outcomes.
In its April 2026 Nigeria Development Update titled “Nigeria’s Tomorrow Must Start Today: The Case for Early Childhood Development,” the bank highlighted serious challenges in child health, nutrition, and education, warning that these issues could weaken future productivity and growth.
Despite moderate economic expansion—4.1% in 2024 and 4.0% in 2025—the report noted that growth has been largely driven by the services sector, including ICT, finance, and real estate, with limited contributions from agriculture and oil.
Although inflation has eased slightly due to tighter monetary policies, improved food supply, and exchange rate stability, it remains in double digits. External reserves also improved, reaching $45.5 billion by the end of 2025.
However, the bank stressed that economic gains have not translated into better living conditions for most Nigerians. Wage growth continues to lag behind inflation, keeping real incomes low and poverty levels largely unchanged.
A major concern raised is the state of early childhood development. The report revealed that:
- 110 out of every 1,000 Nigerian children die before age five
- 40% of children are stunted
- 52% are not developmentally ready for school
These outcomes are linked to gaps in maternal healthcare, nutrition, early education, and access to clean water and sanitation—especially within the first 2,000 days of a child’s life. The situation is further worsened by inequality, with children from poorer households significantly more affected.
Globally, the bank also revised growth forecasts for Sub-Saharan Africa downward, citing economic pressures from the Middle East conflict, which has increased fuel and fertiliser costs and disrupted markets.
Reacting, Nigeria’s Finance Minister, Wale Edun, said ongoing fiscal reforms are stabilising the economy, pointing to improving revenues, easing inflation, and a more stable exchange rate. Similarly, Budget Office DG Tanimu Yakubudescribed the current situation as an economic adjustment rather than a collapse.
Meanwhile, NACCIMA called for strategic reforms, urging businesses to adapt to evolving economic realities while leveraging opportunities such as the digital economy and regional trade.
The World Bank concluded that urgent investments in early childhood development are critical to unlocking Nigeria’s full economic potential and ensuring inclusive growth.
