The World Bank’s grim assessment of Nigeria’s poverty levels has triggered widespread outrage, with various stakeholders calling for urgent reforms to avert an impending poverty-induced economic crisis.
At the just-concluded 2025 Spring Meetings in Washington, D.C., the World Bank and International Monetary Fund (IMF) painted a bleak outlook for Nigeria’s economy in the short to medium term. Among the highlights was a downgrade of Nigeria’s growth forecast and a warning that current economic reforms are largely ineffective in promoting inclusive growth. The World Bank further projected that the poverty rate would worsen by 2027.
Reaction from Stakeholders
Speaking to Financial Vanguard, economists and civil society organizations (CSOs) expressed embarrassment over Nigeria’s poor rating at the meetings. While they outlined critical challenges, they also proposed recommendations to steer the economy away from disaster.
Commenting on the World Bank’s report, Dele Oye, President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), proposed urgent short-term interventions aimed at protecting vulnerable populations and reinvigorating the fight against poverty.
Meanwhile, ActionAid Nigeria (AAN) said it was not surprised by the World Bank’s findings. AAN’s Country Director, Andrew Mamedu, stated:
“ActionAid Nigeria is deeply concerned, yet unsurprised, by the grim projections from the World Bank’s April 2025 Africa’s Pulse report, which forecasts a 3.6 percentage point increase in Nigeria’s poverty rate by 2027.
Governance remains Nigeria’s greatest obstacle, with poor government effectiveness, accountability, and political stability ranking among the worst in Africa.”
Mamedu criticized public institutions, including the National Assembly and Judiciary, for failing to hold the government accountable. Instead, he noted, they prioritize luxury spending, such as new SUVs and office renovations, while millions slip deeper into poverty.
He accused the Tinubu administration of evading structural reforms, relying on superficial social protection rhetoric, and ignoring citizens’ real needs, warning that Nigeria risks becoming the global capital of extreme poverty.
A Sobering Reality — Adeyanju
Human rights lawyer and activist Deji Adeyanju described the World Bank’s report as a “sobering” reality:
“Despite being Africa’s largest economy, Nigeria remains a global epicenter of poverty, accounting for 15% of the world’s extremely poor population.”
Adeyanju cited alarming data:
- In 2023, 38.9% of Nigerians (about 87 million people) lived below the national poverty line.
- By 2024, over 106 million Nigerians lived in extreme poverty (below $2.15 per day).
He attributed worsening poverty to inflation, currency depreciation, insecurity, weak job creation, and continued emigration pressures.
All Signs Were There — CISLAC
Executive Director of the Civil Society Legislative and Advocacy Centre (CISLAC), Awual Rafsanjani, said the World Bank’s projection was predictable:
“We have long warned about reckless spending, excessive borrowing, corruption, and the lack of real economic productivity. State governments prioritize vanity projects over real investments in education, healthcare, and infrastructure.”
He warned that unless governance priorities shift, poverty and inequality will continue deepening.
The Way Forward — Stakeholder Recommendations
1. NACCIMA’s Recommendations:
Dele Oye proposed several measures, including:
- Well-structured stimulus packages for vulnerable populations.
- Expanded investment in agriculture, including subsidized inputs and long-term credit facilities.
- Support for SMEs, especially youth and women entrepreneurs.
- Improved rural infrastructure to facilitate market access.
- Public-private partnerships for economic development.
- Reduction in raw material exports and a focus on local manufacturing.
2. CPPE’s Viewpoint — Muda Yusuf:
Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), emphasized that the World Bank’s projections are conditional:
“If the government addresses key drivers of poverty, such as rising cost of living, inflation, weak productivity, insecurity, and corruption, Nigeria can reverse this trend.”
He stressed the need for improved macroeconomic management, expanded social sector investment (especially in education and health), and population control initiatives.
3. ActionAid Nigeria’s Proposals:
AAN urged the government to:
- Strengthen and expand universal social protection programs.
- Protect smallholder farmers by tackling insecurity.
- Cut non-essential public spending and redirect resources toward job creation, healthcare, and education.
- Implement transparent, citizen-centered fiscal and monetary policies.
4. Deji Adeyanju’s Reform Blueprint:
Adeyanju recommended:
- Diversifying the economy through investment in agriculture and technology.
- Enhancing public spending transparency.
- Improving security to stabilize regions.
- Supporting SMEs and implementing tight monetary policies to cushion living costs.
5. CISLAC’s Economic Revival Strategies:
Rafsanjani added:
- Supporting small-scale businesses through improved trade and investment policies.
- Enhancing ease of doing business.
- Prioritizing agriculture by addressing insecurity to allow farmers to return to production.
6. Global Rights Nigeria’s Standpoint:
Abiodun Baiyewu, Executive Director of Global Rights Nigeria, lamented the government’s lack of serious investment in poverty alleviation:
“The government must invest more in expanding social safety nets, ensuring universal access to healthcare and education, and tackling insecurity decisively.”