The World Bank has projected that poverty in Nigeria will
increase by 3.6 percentage points over the next five years, rising through
2027.
This is according to the Bank’s Africa’s Pulse report,
released during the ongoing Spring Meetings of the International Monetary Fund
(IMF) and the World Bank in Washington, DC.
The report paints a troubling outlook for poverty reduction
in Nigeria, highlighting that despite some recent gains in economic
activity—particularly in the non-oil sector during the last quarter of
2024—structural issues related to resource dependence and national fragility
are likely to hinder progress.
According to the World Bank, Nigeria, alongside other
resource-rich and fragile countries in Sub-Saharan Africa, will experience a
worsening poverty situation—unlike non-resource-rich countries, which are
expected to see faster poverty reduction.
“Poverty in resource-rich, fragile countries—including large
economies like Nigeria and the Democratic Republic of Congo—is projected to
increase by 3.6 percentage points between 2022 and 2027,” the report stated.
The report underscores that Sub-Saharan Africa continues to
have the highest extreme poverty rate globally, with a disproportionate
concentration of the poor: In 2024, 80% of the world’s 695 million extreme poor
lived in Sub-Saharan Africa.
Within the region, half of the 560 million extreme poor were
located in just four countries.
In comparison, South Asia accounted for 8%, East Asia and
the Pacific 2%, the Middle East and North Africa 5%, and Latin America and the
Caribbean 3%.
Resource-rich countries are expected to lag in poverty
reduction due to slowing oil prices and weak fiscal structures. Conversely,
non-resource-rich countries are benefiting from high agricultural commodity
prices, which are fueling stronger growth despite fiscal pressures.
The report adds: “This follows a well-established pattern
whereby resource wealth combined with fragility or conflict is associated with
the highest poverty rates—averaging 46% in 2024, which is 13 percentage points
higher than in non-fragile, resource-rich countries.”
In light of these projections, the World Bank recommends
that Nigeria and similar economies focus on improving fiscal management and
building a stronger fiscal contract with citizens to promote inclusive economic
development and long-term poverty alleviation.
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