By Kolawole Ojebisi
The World Bank has said an estimated 14 million Nigerians are languishing in the abyss of penury.
The international Bank ascribed this unpleasant development to rising inflation which has negatively affected the purchasing power of most Nigerians, especially those with low income in 2024.
The data is contained in 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 live 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.
The report reads partly: “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 is expected to 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.
Recall that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, had earlier said that the Federal government social investment programme has expanded its reach to 25 million vulnerable Nigerians from five million households.
Edun, who spoke with reporters at the State House, Abuja, after the 145th meeting of the National Economic Council, said the first and second payments have already been made to beneficiaries.
