Low income pushes 14m Nigerians into poverty – World Bank

As inflation rises, low labour income has pushed an estimated 14 million Nigerians into poverty in 2024.

This is according to the World Bank’s latest report on Macro Poverty Outlook: Country-by-Country Analysis and Projections for the Developing World.

The report noted that nearly 47 per cent of the Nigerian population now lives below the international poverty line of $2.15 per day, as surging inflation and a struggling economic structure fail to meet the demands of rapid population growth.

It read, “Labour incomes have not kept pace, pushing an additional 14 million Nigerians into poverty in 2024. An estimated 47 per cent of Nigerians now live in poverty (or below the international poverty line of $2.15.”

In response to the rising poverty levels, the report noted that the Nigerian government has launched temporary cash assistance initiatives targeting 15 million households.

Each household will receive N75,000, distributed in three instalments, benefitting an estimated 67 million people overall.

The World Bank added, “Poverty is estimated at 52 per cent in 2026. Reforms to protect the poorest against inflation and boost livelihoods through more productive work are key for Nigerians to escape poverty. A tight monetary stance while avoiding reliance on ways and means remains crucial for moderating inflation.”

To curb inflationary pressures, the Central Bank of Nigeria raised the monetary policy rate by 850 basis points from February to September 2024, alongside an increase in the cash reserve ratio.

Yet, inflation continues to erode household purchasing power, compounding the hardship for millions, the report noted.

The World Bank stressed the need for continued reforms, noting that “While macro stabilization is essential and currently underway, by itself it is insufficient to enable Nigeria to reach its growth potential. Sustained efforts and the establishment of a credible track record are necessary to achieve sustained progress.

“Economic growth has struggled to keep pace with population growth, contributing to poverty exacerbated by double-digit inflation.”

The Washington-based lender called for a comprehensive approach to bolster resilience and create sustainable pathways out of poverty for the millions affected.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, earlier said that the social investment programme has expanded its reach to 25 million vulnerable Nigerians from five million households.

The programme involves direct cash transfers to individuals on the social register, verified through biometric identification and paid through bank accounts or mobile wallets.

Edun, who spoke with reporters at the State House, Abuja, after the 145th meeting of the National Economic Council, said that the first and second payments have already been made to beneficiaries.