Nigeria’s Poverty Crisis Deepens: 63% of Population Poor Despite Inflation Cooling — World Bank
Nigeria’s poverty burden intensified in 2025, with nearly two-thirds of the population now living below the national poverty line, even as headline inflation showed signs of easing, according to a new World Bank assessment.
In the Nigeria Development Update (April 2026) titled Nigeria’s Tomorrow Must Start Today: The Case for Early Childhood Development and unveiled in Abuja, the global lender revealed that the share of Nigerians classified as poor climbed from 56% in 2023 and 61% in 2024 to 63% last year. That translates to roughly 140 million citizens struggling with economic hardship.
The report shows the rise in poverty occurred despite a significant moderation in inflation over the same period. Data from Nigeria’s statistics agency indicated that headline inflation tumbled from around 34.8% in December 2024 to about 15.15% in December 2025, while food inflation dropped sharply.
However, the World Bank noted that the pace of income growth has failed to keep ahead of still-elevated price pressures, leaving households with eroded purchasing power and limited gains in real living standards. “Household incomes have not grown fast enough to offset still-elevated inflation, and poverty has yet to begin declining,” the report stated.
The persistence of high poverty levels reflects both the lingering effects of earlier inflation spikes and broader structural constraints in the economy. The Bank highlighted that while services and industry sectors have driven growth, agriculture, which employs the majority of the poor has lagged, limiting meaningful income improvements for millions.
Looking ahead, the World Bank projects a gradual easing of poverty from 2026 onwards as price pressures continue to moderate and macroeconomic conditions improve. However, the pace of progress is expected to remain slow unless growth becomes more inclusive, with stronger job creation, higher agricultural productivity, and support for human capital development.
Global disruptions, including geopolitical tensions that have pushed up energy and food costs, have compounded challenges for vulnerable households.