Nigeria’s poverty rate rose to 63 per cent in 2025, even as inflation eased, highlighting the limited impact of recent economic improvements on citizens’ living conditions, according to the World Bank.
The figures were published in the bank’s April 2026 Nigeria Development Update titled “Nigeria’s Tomorrow Must Start Today: The Case for Early Childhood Development,” unveiled in Abuja.
The report shows a steady rise in poverty levels over recent years—from 56 per cent in 2023 to 61 per cent in 2024, reaching 63 per cent in 2025. This translates to roughly 140 million Nigerians living below the poverty line.
This increase occurred despite a significant drop in inflation. Data from the National Bureau of Statistics indicates that headline inflation fell from 34.80 per cent in December 2024 to 15.15 per cent in December 2025. Food inflation also declined sharply from 39.84 per cent to 10.84 per cent within the same period.
Despite this improvement, the World Bank noted that inflation remains high enough to erode purchasing power, while income growth has lagged behind. As a result, many households continue to struggle with rising living costs.
The report explained that earlier spikes in inflation had already weakened real incomes, and the recent decline in prices has not been sufficient to reverse those losses. External factors, including global disruptions such as the Middle East conflict, have also contributed to higher costs of food, energy, and transportation.
In addition, the structure of Nigeria’s economic growth has slowed poverty reduction. Growth has been driven largely by the services and industrial sectors, while agriculture—where a majority of low-income Nigerians are employed—has underperformed. This imbalance has limited income gains among the most vulnerable populations.
Looking ahead, the World Bank projects a gradual decline in poverty starting from 2026 as inflation continues to moderate and economic conditions stabilise. Poverty levels could fall to about 59 per cent by 2028, supported by lower food prices and moderate growth.
However, the bank cautioned that progress will likely be slow due to persistent challenges such as weak job creation, low agricultural productivity, and inequality. It stressed that economic growth must be inclusive and employment-driven to significantly reduce poverty.
