The World Bank has warned that Nigeria’s poverty rate will worsen by 3.6 percentage points between 2022 and 2027, citing structural weaknesses and over-reliance on oil revenue.
The projection is contained in its latest “Africa’s Pulse” report released during the IMF/World Bank Spring Meetings in Washington, D.C.
Nigeria, alongside the Democratic Republic of Congo and other resource-rich but fragile Sub-Saharan countries, is expected to experience rising poverty despite modest growth in the non-oil sector in late 2024.
The report says 80% of the world’s 695 million extreme poor reside in Sub-Saharan Africa, with half of that population concentrated in just four countries, including Nigeria.
In contrast, poverty in non-resource-rich African countries is declining due to agricultural commodity gains and better fiscal structures.
The World Bank attributes Nigeria’s poor outlook to weak fiscal management and governance challenges. It urges reforms to strengthen the social contract, boost inclusive growth, and reduce vulnerability.
With global oil prices weakening, the report warns that countries like Nigeria must diversify and stabilize their economies or risk deeper poverty.
