The World Bank has warned that nearly 79 per cent of Nigerians are either living in poverty or remain highly vulnerable to falling into poverty despite a series of economic reforms introduced by the Federal Government over the past three years.
The assessment is contained in the World Bank’s newly approved Country Partnership Framework (CPF) for Nigeria (2026–2032) and its accompanying Country Diagnostic Report, which examined the country’s economic and social conditions.
According to the report, while recent macroeconomic reforms have helped stabilize parts of Nigeria’s economy, they have yet to deliver meaningful improvements in the living standards of millions of citizens.
The World Bank noted that fiscal and monetary reforms implemented since 2023, including the removal of petrol subsidies and the liberalisation of the foreign exchange market, have improved macroeconomic stability and investor confidence. However, the reforms have also contributed to rising inflation and increased pressure on household incomes.
The report estimates that Nigeria’s poverty rate has risen significantly over recent years, increasing from about 40 per cent in 2019 to approximately 61 per cent by 2025/2026.
According to the World Bank, several structural challenges continue to drive poverty across the country, including overdependence on crude oil revenues, slow growth in agriculture, limited job creation and weak economic diversification.
The report also highlighted widespread childhood malnutrition and stunted growth as major long-term threats to Nigeria’s human capital development, warning that poor nutrition and inadequate healthcare could undermine future workforce productivity.
In addition, the World Bank observed that the implementation of the National Cash Transfer Programme, introduced to cushion the impact of economic reforms on vulnerable households, has progressed more slowly than expected. It noted that about 8.1 million households have received at least one payment under the programme, leaving many eligible beneficiaries yet to receive support.
As part of its new six-year partnership strategy with Nigeria, the World Bank said it would focus on promoting private sector-led economic growth, particularly in agriculture and micro, small and medium-sized enterprises (MSMEs), with the aim of creating more jobs and expanding economic opportunities.
The lender also plans to increase investments in education, nutrition, healthcare and sanitation, targeting an eight-percentage-point reduction in childhood stunting among children under five during the implementation period.
Despite the planned interventions, the World Bank cautioned that achieving broad-based poverty reduction would require sustained reforms alongside faster expansion of social protection programmes and measures to address persistently high food prices.
The report concludes that while Nigeria’s recent economic reforms have laid the groundwork for greater macroeconomic stability, their long-term success will depend on how quickly their benefits translate into improved livelihoods for millions of vulnerable households.