ABUJA, Nigeria (VOICE OF NAIJA)- Rising inflation and low wages have driven an estimated 14 million Nigerians into poverty in 2024.
This was contained in the World Bank’s latest Macro Poverty Outlook: Country-by-Country Analysis and Projections for the Developing World report.
The report notes that nearly 47 percent of Nigeria’s population now live below the international poverty line of $2.15 per day, as escalating inflation and a weakened economy struggle to keep pace with the nation’s rapid population growth.
It read, “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 rising poverty, the report highlights that the Nigerian government has introduced temporary cash assistance programs aimed at reaching 15 million households.
Each household is set to receive N75,000, distributed in three installments, with the initiative expected to benefit approximately 67 million people in total.
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.”
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To address inflationary pressures, the Central Bank of Nigeria increased the monetary policy rate by 850 basis points between February and September 2024, along with a hike in the cash reserve ratio.
However, inflation continues to erode household purchasing power, further intensifying hardship for millions, the report observed.
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 has urged a comprehensive strategy to strengthen resilience and create sustainable pathways out of poverty for millions affected.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, recently announced that the social investment program has expanded to support 25 million vulnerable Nigerians across five million households.
This initiative provides direct cash transfers to individuals listed on the social register, verified through biometric ID and delivered via bank accounts or mobile wallets.
Speaking with reporters at the State House in Abuja following the 145th National Economic Council meeting, Edun confirmed that the first and second payments have already reached beneficiaries.