The World Bank's Nigeria development update unveils a stark reality—Nigeria's poverty rate has surged to 46 percent in 2023, translating to a staggering 104 million poor Nigerians.
The report attributes this alarming increase from 40 percent in 2018 to sluggish growth and rising inflation, pushing an additional 24 million people below the national poverty line.
Urban areas, more exposed to inflation, witnessed an increase from 13 million to 20 million poor, while rural areas saw a rise from 67 million to 84 million within the same period.
The World Bank suggests that recent reforms by President Bola Tinubu, including ending the petrol subsidy and devaluing the naira, aim to reverse this trend, projecting a decrease from 46 percent in 2024 to 44 percent in 2026.
While acknowledging the economic adjustments as challenging, the report highlights the essential nature of these reforms for Nigeria to avoid a fiscal cliff and enable faster growth.
