Nigeria’s poverty rate climbed to 63% in 2025, even as inflation eased, according to a new report by the World Bank released Tuesday in Abuja.
The report shows how falling prices have not yet improved household incomes, leaving millions struggling despite macroeconomic gains.
Meanwhile, the Nigeria Development Update (April 2026) revealed poverty rose from 56% in 2023 to 61% in 2024, before reaching 63% in 2025.
“Household incomes have not grown fast enough to offset still-elevated inflation, and poverty has yet to begin declining.”
Consequently, about 140 million Nigerians now live below the poverty line, reflecting deep economic strain across households.
Although inflation dropped sharply from 34.80% in December 2024 to 15.15% in December 2025, its earlier surge weakened purchasing power.
Similarly, food inflation fell from 39.84% to 10.84% within the same period, yet many families still face high living costs.
Why Falling Inflation Has Not Reduced Poverty
The World Bank explained that earlier inflation spikes had already damaged real incomes before prices began to ease.
“The persistence of poverty reflects the cumulative impact of earlier inflation spikes,” the report stated.
Furthermore, global shocks, including the crisis in the Middle East, have increased energy and food prices, worsening hardship for low-income households.
“These developments are adding pressure to inflation and poverty, including via food prices.”
Meanwhile, Nigeria’s growth pattern has also slowed poverty reduction, as expansion remains concentrated in services and industry.
“Growth in the agriculture sector—where more than half of the poor work—has lagged services and industry.”
This imbalance has limited income gains for vulnerable populations, reducing the impact of economic growth on living standards.
Government Response And Outlook To 2028
Despite the rising poverty rate, the report projects a gradual decline beginning from 2026 as inflation stabilises further.
“Despite elevated poverty levels, a gradual decline is expected from 2026 as inflation continues to ease.”
The bank forecasts poverty could drop to about 59% by 2028, driven by lower food prices and moderate growth.
However, structural issues such as weak job creation and low agricultural productivity may slow progress.
Speaking at the report launch, Fiseha Haile warned that inflation still threatens recovery.
“It remains high… and it risks eroding real incomes and slowing poverty reduction.”
He added that inclusive growth is essential for real change.
“There is a critical need to bring inflation down… and promote growth… to make sure citizens feel the benefits.”
Meanwhile, Finance Minister Wale Edun said government policies focus on lifting millions out of poverty.
“The ultimate goal is lifting Nigerians out of poverty by the millions.”
He added that social safety nets remain key to protecting vulnerable citizens.
“There is still that commitment to have in place a social safety net… to cope with elevated costs.”
As reported by Reuters, the findings show that economic stability alone may not translate into improved welfare without inclusive policies.
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