79% of Nigerians Face Poverty Despite Tinubu’s Reforms – World Bank Reveals

Despite nearly three years of sweeping economic reforms introduced by President Bola Tinubu’s administration, about 79 per cent of Nigerians remain poor or vulnerable to falling into poverty, according to a new World Bank report.

The findings are contained in the World Bank’s newly approved Country Partnership Framework for Nigeria covering 2026 to 2032 and its accompanying Streamlined Country Diagnostic, which assessed Nigeria’s economic performance and development challenges.

According to the report, 61 per cent of Nigerians currently live below the poverty line, while 33 per cent are classified as ultra-poor and unable to meet their minimum food requirements.

The World Bank said, “Thirty-three per cent of its population is ultra-poor (food insecure by age-weighted caloric intake), 61 per cent is below the poverty line, and 79 per cent is near poor (below the poverty line or vulnerable to falling back into poverty).”

The report reviewed the major economic reforms introduced by President Tinubu since assuming office in May 2023. These include the removal of the petrol subsidy, the unification and liberalisation of the foreign exchange market, tighter monetary policy by the Central Bank of Nigeria to curb inflation, tax reforms, efforts to improve revenue collection, and broader fiscal reforms under the Renewed Hope Agenda.

According to the World Bank, the reforms have helped stabilise the economy and improve key macroeconomic indicators. It said economic growth increased from 3.5 per cent in the first half of 2024 to 3.9 per cent during the corresponding period of 2025. Foreign reserves have risen above $42 billion, fiscal deficits have narrowed and investor confidence has strengthened.

However, the Bank said the gains from the reforms have yet to translate into meaningful improvements in the living standards of most Nigerians.

It stated, “Despite recent bold reforms stabilising the economy and laying the groundwork for the Renewed Hope Agenda, significant structural challenges remain.”

The report added, “High inflation, though declining, continues to erode real incomes, particularly for the poor. Social protection efforts to support the most vulnerable have been slow and uneven in their rollout.”

The World Bank estimated that about 139 million Nigerians currently live below the national poverty line, while more than 86 million people still lack access to electricity. It also noted that between three and four million young Nigerians enter the labour market every year with limited employment opportunities.

According to the report, creating jobs on a large scale remains the most effective way to reduce poverty. It projected that about 60 million young Nigerians would enter the labour force over the next decade, making employment generation the country’s most urgent development priority.

The Bank also expressed concern over Nigeria’s weak social protection system, noting that public spending on social protection accounted for just 0.14 per cent of Gross Domestic Product in 2021, while only 8.5 per cent of poor Nigerians were covered by any form of social safety net.

It said it would support Nigeria in building a better-targeted and domestically financed social protection system, with plans to expand coverage to about 41 million beneficiaries.

The report further observed that employment alone would not immediately eliminate poverty because many Nigerians who already have jobs remain poor due to low wages and widespread informal employment. It noted that only about 14 per cent of employed Nigerians currently work in regular wage-paying jobs.

The World Bank stressed that preserving the current reform momentum, accelerating private investment, strengthening governance and implementing deeper structural reforms would determine whether Nigeria succeeds in lifting millions of people out of poverty.

President Tinubu has repeatedly defended the reforms, insisting they were necessary to rescue Nigeria’s economy from years of distortions and put it on the path of sustainable growth. The President has maintained that although the reforms have imposed short-term hardship on citizens, they are beginning to deliver results through improved macroeconomic stability, stronger public finances and increased investor confidence.

Speaking recently on the economy, Tinubu said, “Nigeria’s economy is making progress despite reform pains,” adding that his administration remains committed to implementing policies that will deliver long-term prosperity and improve the lives of Nigerians.