Over 70% of Nigerians Remain Poor Despite Reforms, World Bank Says

By Enemona Samuel Endurance | The Bureau Journal

More than seven in every 10 Nigerians remain poor or are at risk of falling into poverty despite sweeping economic reforms introduced by the Federal Government, according to the World Bank.

The international financial institution said that although recent reforms have improved Nigeria’s macroeconomic stability, the benefits have yet to translate into better living conditions for millions of citizens who continue to grapple with rising living costs, food insecurity and declining purchasing power.

World Bank Raises Concern Over Poverty Levels

The World Bank estimates that over 70 percent of Nigerians are either living in poverty or remain vulnerable to becoming poor, underscoring the enormous social challenges facing Africa’s largest economy.

While reforms such as the removal of petrol subsidy, exchange rate liberalisation and fiscal adjustments have strengthened government revenues and restored investor confidence, the institution noted that many households have yet to experience tangible improvements in their daily lives.

Economic Reforms Deliver Stability, But Not Shared Prosperity

President Bola Tinubu’s administration has implemented several economic reforms since 2023 aimed at stabilising Nigeria’s economy.

These measures have received positive assessments from international financial institutions for improving foreign exchange liquidity, strengthening public finances and attracting renewed investor interest.

However, the reforms also triggered sharp increases in fuel prices, transportation costs and inflation, placing additional pressure on households already struggling with the high cost of living.

Millions Still Face Food Insecurity

According to the World Bank, poverty remains widespread across the country, with millions of Nigerians continuing to experience food insecurity and reduced purchasing power.

The institution stressed that achieving macroeconomic stability alone is not enough unless ordinary citizens begin to see improvements in income, employment opportunities and living standards.

Federal Government Plans New Poverty Scorecard

In response to concerns about the impact of the reforms, the Federal Government has announced plans to introduce a new “shared prosperity” scorecard to measure whether economic policies are improving the lives of Nigerians.

Speaking at a BusinessDay conference in Lagos, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, said the scorecard will track three major indicators:

• Reduction in multidimensional poverty.
• Growth in real income per capita.
• Decline in income inequality.

The proposed framework is expected to provide measurable evidence of whether economic reforms are producing meaningful social and economic outcomes for Nigerians.

Economists Call for Inclusive Growth

Economic analysts have repeatedly argued that while macroeconomic indicators are important, long-term success will depend on how quickly reforms translate into job creation, improved incomes, lower food prices and stronger social protection programmes.

They note that sustained economic growth must be accompanied by policies that directly improve household welfare, particularly for vulnerable populations affected by inflation and rising living costs.

Outlook for Nigeria’s Economy

The World Bank maintains that Nigeria’s economic reforms remain necessary for long-term stability but says greater attention must now be given to ensuring that growth becomes inclusive.

With poverty levels remaining high, the institution believes future policy efforts should focus on expanding economic opportunities, improving productivity, protecting vulnerable households and ensuring that the gains from ongoing reforms reach ordinary Nigerians.