More Nigerians Will Become Poor By 2027 — World Bank

The World Bank has forecasted an increase in poverty rates in Nigeria, predicting a rise of 3.6 percentage points by 2027.

This projection was included in the Bank’s Africa’s Pulse report, unveiled during the current Spring Meetings of the International Monetary Fund (IMF) and the World Bank in Washington, DC.

The report paints a grim picture for poverty alleviation in Nigeria, cautioning that despite slight improvements in economic performance—especially in the non-oil sector in late 2024—structural issues such as dependence on natural resources and national instability are likely to hinder progress.

According to the World Bank, Nigeria and other fragile, resource-dependent nations in Sub-Saharan Africa will experience worsening poverty, in contrast to non-resource-rich countries, which are expected to see faster poverty declines.

“Poverty in resource-rich, fragile countries—including large economies like Nigeria and the Democratic Republic of Congo—is projected to increase by 3.6 percentage points between 2022 and 2027,” the report stated.

The Bank highlighted that Sub-Saharan Africa continues to have the highest global rate of extreme poverty. In 2024, 80% of the world’s 695 million extreme poor resided in the region, with half of the 560 million concentrated in just four countries.

In comparison, South Asia accounted for 8% of the world’s extreme poor, East Asia and the Pacific 2%, the Middle East and North Africa 5%, and Latin America and the Caribbean 3%.

The report attributes the sluggish pace of poverty reduction in resource-rich nations to declining oil prices and weak fiscal frameworks. Conversely, non-resource-rich countries are capitalizing on high agricultural commodity prices to foster stronger growth, despite facing fiscal challenges.

“This follows a well-established pattern whereby resource wealth combined with fragility or conflict is associated with the highest poverty rates—averaging 46% in 2024, which is 13 percentage points higher than in non-fragile, resource-rich countries,” the report added.

To address these issues, the World Bank encouraged Nigeria and similar economies to enhance fiscal management and establish a more robust fiscal contract with citizens, stating that such reforms are essential for fostering inclusive economic growth and achieving sustainable poverty reduction.

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli