The World Bank has raised fresh concerns over Nigeria’s economic outlook, warning that poverty levels in the country are likely to rise by 3.6 per cent between now and 2027.
The projection is contained in the latest edition of the Africa’s Pulse report, which was released this week during the Spring Meetings of the International Monetary Fund (IMF) and the World Bank in Washington, D.C.
“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.
According to the World Bank, sub-Saharan Africa continues to bear the heaviest burden of global poverty. As of 2024, about 80 per cent of the world’s 695 million people living in extreme poverty are located in the region.
Even more concerning, the Bank revealed that nearly half of the region’s 560 million poor people live in just four countries, including Nigeria.
While the report did not provide specific reasons for Nigeria’s projected rise in poverty, it highlighted broader issues facing resource-rich nations in Africa. These include fluctuating oil prices and fragile fiscal systems, both of which make sustained economic growth and poverty reduction more difficult.
“This follows a well-established pattern whereby resource wealth combined with fragility or conflict is associated with the highest poverty rates—averaging 46 per cent in 2024, which is 13 percentage points higher than in non-fragile, resource-rich countries,” the World Bank said.
In contrast, the report noted that countries less dependent on oil are seeing some relief. Higher agricultural commodity prices are helping those economies grow, even in the face of financial stress.
The warning from the World Bank adds to growing concerns over rising living costs and deepening inequality in Nigeria, as more citizens continue to struggle with food inflation, job losses, and weak public services.
