14 Million Nigerians Slide into Poverty Due to Low Income – World Bank

An estimated 14 million Nigerians were pushed into poverty in 2024 due to low labor income amid rising inflation, according to the World Bank’s latest ‘Macro Poverty Outlook: Country-by-Country Analysis and Projections for the Developing World’.

The report reveals that nearly 47% of Nigeria’s population now lives below the international poverty line of $2.15 per day. The combination of surging inflation and a sluggish economic structure has intensified hardship for many, as the economy struggles to support Nigeria’s rapidly growing population.

“Labor incomes have not kept pace, pushing an additional 14 million Nigerians into poverty in 2024,” the report states. “An estimated 47% of Nigerians now live in poverty, or below the international poverty line of $2.15 per day.”

In an attempt to counter rising poverty, the Nigerian government has launched temporary cash assistance initiatives targeting 15 million households. Under this program, each household will receive ₦75,000 in three instalments, with the initiative expected to benefit around 67 million people.

The World Bank warns that without sustained reforms, poverty levels may rise further, with estimates suggesting a poverty rate of 52% by 2026. It recommends implementing measures to protect the poorest against inflation and improve income opportunities through more productive work. Maintaining a strict monetary policy while avoiding reliance on deficit financing is also deemed crucial for managing inflation.

To curb inflation, the Central Bank of Nigeria increased the monetary policy rate by 850 basis points between February and September 2024 and raised the cash reserve ratio. Despite these measures, inflation continues to erode household purchasing power, exacerbating the struggles of millions, the report notes.

The World Bank underscores that while macroeconomic stabilization is crucial, it alone will not unlock Nigeria’s full growth potential. “Sustained efforts and a credible track record are necessary to achieve lasting progress. Economic growth has struggled to keep up with population growth, contributing to poverty aggravated by persistent double-digit inflation,” the report states.

Additionally, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, noted that Nigeria’s social investment program has expanded its reach from five million to 25 million vulnerable Nigerians across five million households. The program provides direct cash transfers to individuals registered on the social register, verified through biometric identification and distributed via bank accounts or mobile wallets.

Following the 145th meeting of the National Economic Council at the State House in Abuja, Edun confirmed that the first and second rounds of payments have already been disbursed to beneficiaries.