Nearly 79 per cent of Nigerians remain poor or vulnerable to falling into poverty despite recent economic reforms, according to the World Bank’s newly approved Country Partnership Framework (CPF) for Nigeria covering 2026 to 2032.
The report said about 61 per cent of Nigerians live below the national poverty line, while 33 per cent are classified as ultra-poor and unable to meet minimum food requirements. It estimated that about 139 million people are living in poverty, with the burden concentrated largely in northern Nigeria.
According to the World Bank, recent reforms by the Federal Government—including the removal of petrol subsidies, exchange rate liberalisation, tighter monetary policy and tax reforms—have helped stabilise the economy but have yet to significantly improve living standards.
The Bank noted that economic growth rose from 3.5 per cent in the first half of 2024 to 3.9 per cent during the same period in 2025, while foreign reserves exceeded $42 billion, fiscal deficits narrowed and investor confidence improved.
However, it warned that persistent inflation continues to erode household incomes, particularly among low-income families, while the rollout of social protection programmes has been slow and uneven.
The report identified structural weaknesses, dependence on crude oil, weak institutions, poor policy coordination and inadequate budget transparency as major obstacles to inclusive growth.
It also highlighted Nigeria’s growing employment challenge, projecting that about 60 million young people will enter the labour market over the next decade. The Bank noted that only about 14 per cent of employed Nigerians have regular wage-paying jobs, with most workers engaged in low-paying informal employment.
Under its new Country Partnership Framework, the World Bank said it would support labour-intensive sectors such as agriculture and micro, small and medium-sized enterprises (MSMEs), while investing in electricity, digital infrastructure, education and healthcare to create jobs and reduce poverty.
The framework also proposes expanding Nigeria’s social protection system through better-targeted cash transfers, digital identity and payment systems, with a target of reaching about 41 million beneficiaries.
The report further raised concerns over poor human capital outcomes, noting that 84 per cent of Nigerian children aged between five and 14 cannot read age-appropriate texts despite attending school. It also identified childhood malnutrition and stunting as key drivers of intergenerational poverty.
Reviewing its previous Country Partnership Framework (2021–2025), the World Bank said poverty increased from about 40 per cent in 2019 to 61 per cent in 2025, despite support programmes aimed at cushioning the impact of economic shocks. It noted that about 8.1 million households had received at least one payment under the national cash transfer programme.
The Bank stressed that sustaining economic reforms, strengthening governance, encouraging private investment and creating productive jobs would be critical to lifting millions of Nigerians out of poverty.
The report comes shortly after the World Bank approved a fresh $1.25 billion loan for Nigeria under the Nigeria Actions for Investment and Jobs Acceleration programme, alongside the launch of the new six-year partnership framework aimed at supporting private sector-led growth and job creation.
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