35 million Nigerians became poor in five years, says World Bank report

35 million Nigerians became poor in five years, says World Bank report

The World Bank says 129 million Nigerians are now living in poverty as the Nigerian economy has witnessed slow growth and high inflation, eroding citizens’ purchasing power under President Bola Tinubu’s watch.

The Washington-based financial institution disclosed this in its Nigeria Development Update released on Thursday.

“With growth proving too slow to outpace inflation, poverty has risen sharply,” the World Bank said. “Since 2018, the share of Nigerians living below the national poverty line is estimated to have risen sharply from 40.1 per cent to 56.0 per cent. Combined with population growth, this means that some 129 million Nigerians are living in poverty.”

It added, “This stark increase partly reflects Nigeria’s beleaguered growth record. Real GDP per capita has not recovered to the level it was at prior to the oil price-induced recession in 2016.”

Attributing rising poverty in Nigeria to the COVID-19 pandemic and its negative impact on economic growth, the World Bank said the majority of Nigerians have been plunged into poverty under Mr Tinubu’s watch.

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“The COVID-19 pandemic compounded this drop in economic activity. Moreover, growth is failing to outpace inflation: large increases in prices across almost all goods have diminished purchasing power,” the World Bank said.

It added, “Multiple shocks in a context of high economic insecurity have deepened and broadened poverty, with over 115 million Nigerians estimated to have been poor in 2023. Since 2018/19, an additional nearly 35 million people have fallen into poverty, so that more than half of Nigerians (51.1 per cent of the population in 2023) are now estimated to live in poverty.”

The World Bank’s report on the Nigerian economy and sharp rise in poverty under Mr Tinubu’s watch mirrors the Financial Times editorial of July, which dismissed Mr Tinubu’s policies as “disjointed” and detrimental, driving millions into poverty.

“Hunger levels are soaring and millions of children are foregoing meals and school,” the Financial Times said, adding that the president’s economic policies, including the fuel subsidy removal and the floating of the naira, have “pushed tens of millions of already impoverished people deeper into misery.”

In August, widespread protests erupted across Nigeria, lasting ten days, as citizens voiced their discontent over economic hardships worsened by soaring food prices under Mr Tinubu’s administration.

35 million Nigerians became poor in five years, says World Bank report