The World Bank has raised concerns that about 139 million Nigerians are now living in poverty despite recent economic reforms by the Federal Government.
The bank’s Country Director for Nigeria, Mathew Verghis, made this known on Wednesday in Abuja during the launch of the October 2025 Nigeria Development Update (NDU) titled “From Policy to People: Bringing the Reform Gains Home.”
Verghis praised Nigeria’s bold decisions to remove fuel subsidies and unify the exchange rate, calling them “foundational reforms” that could reshape the country’s economy.
“Over the last two years, Nigeria has commendably implemented bold reforms, notably around the exchange rate and the petrol subsidy. These are the foundations on which the country has the opportunity to build a programme that can transform its economic trajectory,” he said.
He noted that the reforms were already showing positive results, including rising revenues, improved debt indicators, stabilising foreign exchange rates, and increasing reserves.
“These are big achievements, and many countries would envy them,” he added.
However, the World Bank chief warned that these improvements had not yet translated into better living conditions for ordinary Nigerians.
“Despite these stabilisation gains, many households are still struggling with eroded purchasing power. Poverty, which began to rise in 2019 due to policy missteps and external shocks such as COVID-19, has continued to increase even after the reforms. In 2025, we estimate that 139 million Nigerians live in poverty,” Verghis said.
The figure marks a sharp increase from 129 million in April 2025 and 87 million in 2023, showing that many families are still facing hardship.
Related Stories:
- Enugu Governor, Minister Clash Over Alleged Certificate Forgery
- ASUU to Begin Two-Week Warning Strike October 13
According to the World Bank, Nigeria must focus on three key priorities to ensure reforms benefit citizens — reducing inflation, spending public funds more effectively, and expanding social protection for the poor.
“Food inflation affects everybody, particularly the poor. Persistent differences between Nigeria’s inflation rate and those of its trading partners will put pressure on the exchange rate and create a vicious cycle,” Verghis explained.
He said lowering inflation would also reduce interest rates and support business growth. The World Bank urged Nigeria to fix inefficiencies in food production and distribution to reduce high food prices.
The bank also called for stronger financial management systems to ensure that government spending delivers real results and helps protect the poorest Nigerians from economic shocks.
“The challenge is clear: to translate the gains from the stabilisation reforms into better living standards for all. These are not abstract ideas but practical steps that can turn macro stability into better livelihoods,” Verghis said.
The launch of the report was attended by senior government officials, business leaders, development partners, and civil society groups, all of whom discussed how Nigeria can ensure its economic progress benefits its people.