World Bank warns Nigeria’s poverty level rising without inclusive economic development and long-term poverty alleviation
By Jeph Ajobaju, Chief Copy Editor
Nigeria has been warned by the World Bank that its poverty level would rise 3.6 per cent by 2027 without stronger fiscal contract with citizens to promote inclusive economic development and long-term poverty alleviation.
The prediction is contained in Africa’s Pulse report released at the ongoing Spring Meetings of the International Monetary Fund (IMF) and the World Bank in Washington.
The report paints a troubling outlook for poverty reduction in Nigeria, stressing that despite some recent gains in economic activity, especially in the non-oil sector in the fourth quarter of 2024 (Q1 2024), structural issues related to resource dependence and national fragility are likely to hinder progress.
In the bank’s view, Nigeria and other resource-rich and fragile countries in Sub-Saharan Africa will experience an exacerbating poverty situation, unlike non-resource-rich countries expected to see faster poverty reduction.
“Poverty in resource-rich, fragile countries – including large economies like Nigeria and the Democratic Republic of Congo – is projected to increase by 3.6 percentage points between 2022 and 2027,” the report said.
The World Bank reiterated that Sub-Saharan Africa continues to have the highest extreme poverty rate globally, with a disproportionate concentration of the poor, noting that in 2024, 80 per cent of the world’s 695 million extreme poor live in Sub-Saharan Africa.
Within the region, half of the 560 million extreme poor are located in just four countries.
South Asia accounts for 8 per cent, East Asia and the Pacific 2 per cent, the Middle East and North Africa 5 per cent, and Latin America and the Caribbean 3 per cent.
Resource-rich countries are expected to lag in poverty reduction due to slowing oil prices and weak fiscal structures. Conversely, non-resource-rich countries are benefiting from high agricultural commodity prices fueling stronger growth despite fiscal pressures.
“This follows a well-established pattern whereby resource wealth combined with fragility or conflict is associated with the highest poverty rates – averaging 46% in 2024, which is 13 percentage points higher than in non-fragile, resource-rich countries,” the report added.
The World Bank recommends that Nigeria and similar economies focus on improving fiscal management and building a stronger fiscal contract with citizens to promote inclusive economic development and long-term poverty alleviation.
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