World Bank Reveals 79 Percent of Nigerians Face Poverty and Vulnerability Despite Economic Reforms

A new diagnostic report from the World Bank indicates that approximately 79% of Nigerians remain poor or highly vulnerable to falling back into poverty. Despite nearly three years of major macroeconomic reforms implemented by the Federal Government, the benefits have yet to significantly improve daily living standards for the majority of the population.

These findings are detailed in the newly approved Country Partnership Framework for Nigeria, which spans from 2026 to 2032. The seven-year strategy highlights that while policy reforms including petrol subsidy removal, exchange rate liberalisation, and tax adjustments have stabilized the national economy and boosted foreign reserves past $42 billion, severe structural challenges persist. Currently, about 139 million Nigerians live below the national poverty line, with poverty heavily concentrated in the northern regions.

The diagnostic document reveals a stark breakdown of the country’s demographic crisis: 33% of the population is classified as ultra-poor and facing food insecurity, 61% lives below the official poverty line, and 79% is categorized as near-poor or highly vulnerable. Additionally, more than 86 million citizens lack access to electricity, and up to four million young people enter the labor market annually to find highly limited formal job opportunities.

To combat these challenges, the framework prioritizes massive job creation as the primary vehicle for poverty reduction, targeting labor-intensive sectors such as agriculture and micro, small, and medium enterprises (MSMEs). The strategy also outlines plans to establish a more agile, better-targeted, and domestically financed social protection system to support vulnerable households. This initiative aims to expand social safety net coverage to roughly 41 million beneficiaries, drawing on successful implementation models from countries like India, Brazil, and Indonesia.

Beyond employment, the report emphasizes that tackling intergenerational poverty requires heavy investments in human capital, particularly in education and healthcare. Currently, learning poverty remains exceptionally high, with 84% of children aged five to 14 unable to read age-appropriate texts. Concurrently, a new $1.25 billion loan has been approved under the Nigeria Actions for Investment and Jobs Acceleration programme to support the execution of these initiatives, amid ongoing domestic discussions regarding the country’s rising external debt profile.