The World Bank has praised Nigeria’s recent economic reforms under President Bola Ahmed Tinubu as “essential” but warned they are adding to the burden on millions of Nigerians, more than half of whom now live in poverty.
In a report released Thursday, the global financial institution said Tinubu’s reforms, including the liberalization of the naira and the removal of fuel subsidies, are key to reviving Nigeria’s struggling economy. However, the measures have led to soaring inflation and a sharp increase in living costs, pushing more Nigerians into poverty.
“Nigeria’s new policy direction is necessary, but in the short term, it has intensified the pressure on households and businesses,” the World Bank stated.
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Since Tinubu took office in May 2023, petrol prices have surged over fivefold, contributing to record inflation levels of over 30 percent. The World Bank revealed that poverty rates have spiked, with 129 million Nigerians—56 percent of the population—now living below the poverty line, up from 40 percent in 2018. Urban poverty has nearly doubled, with 31 percent of city dwellers now impoverished.
The report forecasted that inflation will peak at 31.7 percent in 2024 before gradually declining to 14.3 percent by 2027, thanks to the government’s economic reforms.
As Nigeria battles this economic crisis, the World Bank also underscored the urgent need to create jobs for the country’s youthful population, two-thirds of whom are under 25. The report stressed that job creation is vital for the long-term success of the government’s policies.
