Nigeria’s poverty rate climbs despite falling inflation
Despite recent declines in inflation, poverty in Nigeria has continued to rise, according to the World Bank. The bank’s latest Nigeria Development Update highlights that more Nigerians are now living below the poverty line, with household incomes failing to keep pace with price increases. Fiseha Haile, the World Bank’s Lead Economist for Nigeria, and Wale Edun, the Minister of Finance, both emphasized the need for inclusive growth and targeted social support to address the crisis. The report also points to weak job creation and lagging agricultural productivity as key challenges.
TLDR
- The World Bank reports that Nigeria’s poverty rate increased from 56% in 2023 to 61% in 2024, peaking at 63% in 2025.
- Headline inflation dropped from 34.80% in December 2024 to 15.15% in December 2025, while food inflation fell from 39.84% to 10.84% over the same period.
- Despite easing inflation, household incomes have not grown fast enough to offset previous spikes, resulting in higher poverty.
- Fiseha Haile and Wale Edun stressed that economic growth must be inclusive and job-rich to reduce poverty.
- The government is strengthening social safety nets and targeting support to the most vulnerable, but structural issues like weak job creation and low agricultural productivity persist.
