Nigeria’s poverty charge could hit 62% – Report

Nigeria’s poverty charge is projected to rise sharply to 62 per cent by 2026, with about 141 million individuals anticipated to be residing beneath the poverty line, in accordance with PwC.

The projection is contained in PwC’s Nigeria Financial Outlook 2026, titled “Turning macroeconomic stability into sustainable progress.”

The report notes that regardless of latest coverage actions aimed toward restoring macroeconomic stability, weak progress in actual incomes and persistently excessive residing prices are more likely to push extra households into poverty over the following two years.

PwC estimates that the majority Nigerians will wrestle to file earnings beneficial properties sturdy sufficient to offset rising costs within the close to time period, notably as inflation continues to erode buying energy.

“Poverty is projected to rise to 62 per cent (141 million individuals) by 2026, reflecting weak actual earnings progress and lingering inflation results,” PwC famous.

Whereas inflation is predicted to ease step by step, the agency warned that the underlying price construction of the financial system would restrict significant affordability beneficial properties for households.

In line with the report, consumption patterns amongst low-income households are worsening the influence of rising costs. Meals accounts for as much as 70 per cent of complete consumption amongst poorer Nigerians, making them particularly susceptible to will increase in meals costs.

With meals inflation remaining elevated, these households are disproportionately uncovered to cost shocks. PwC added that even when headline inflation moderates barely, excessive vitality prices, logistics bills and change charge pass-through results will proceed to maintain the costs of meals and important items excessive.

The report warned that rising poverty ranges pose important dangers to Nigeria’s financial stability and progress prospects. A rising share of the inhabitants struggling to fulfill primary wants may weaken home consumption, constrain productiveness progress and place extra strain on public funds.

The World Financial institution’s Nigeria Growth Replace shares an identical view. The lender famous that absolutely the variety of individuals residing in poverty has elevated sharply, from about 81 million in 2019 to roughly 139 million in 2025, that means practically 62 per cent of the inhabitants now lives beneath the poverty line. Earlier estimates confirmed about 115 million Nigerians in poverty in 2023, rising to round 129 million in 2024, indicating that about 14 million individuals fell into poverty in only one yr.

Each PwC and the World Financial institution warning that with out focused interventions equivalent to job creation, productiveness enhancements, and efficient social safety programmes, lowering poverty ranges in Nigeria will stay a significant problem. Rising poverty, they warn, may additionally weaken home consumption, restrict productiveness progress, and place extra strain on public funds.