Poverty levels in Nigeria are set to worsen sharply over the next two years, with as many as 141 million Nigerians — about 62 per cent of the population — expected to be living in poverty by the end of 2026, according to PwC’s Nigeria Economic Outlook 2026 report titled Turning Macroeconomic Stability into Sustainable Growth.
The outlook, released this week, highlights serious concerns that recent economic reforms intended to stabilise the economy have not yet delivered tangible improvements to household welfare.
According to PwC, the expected rise in Nigeria’s poverty rate is primarily due to weak real income growth and persistently high living costs, which together will likely erode the purchasing power of millions of households.
“Poverty is projected to rise to 62 per cent, representing about 141 million people, by 2026, reflecting weak real income growth and lingering inflation effects,” the report stated.
The firm warned that despite projections suggesting that headline inflation could gradually moderate, most Nigerians are unlikely to see income increases substantial enough to offset rising prices in the near term.
The report also explained that the structure of the Nigerian economy, including high energy costs, elevated logistics expenses and the pass-through effects of exchange rate changes, will continue to keep the prices of food and essential goods high for many households.
A key factor driving the worsening poverty picture is the spending pattern of low-income households, who allocate up to 70 per cent of their total consumption to food, making them disproportionately vulnerable to food price increases.
PwC stressed that without strong real income growth, targeted social interventions and structural reforms, maintaining macroeconomic stability alone will not be enough to reverse Nigeria’s rising poverty trend.
Key recommendations from the firm include improving food supply systems and logistics to reduce costs, boosting investment in agriculture to strengthen food security, and supporting job creation and productivity growth to expand household incomes.
The PwC findings align with broader global assessments of Nigeria’s economic challenges. The World Bank’s Nigeria Development Update similarly projects that poverty could peak at approximately 62 percent in 2026, before a slight decline in 2027.
Nigeria’s rising poverty levels come amid ongoing economic pressures, including high inflation, slow real wage growth, and a cost of living that remains elevated for many families.
The PwC outlook underscores a stark reality: while macroeconomic indicators may show signs of stabilisation, many Nigerian households are yet to feel meaningful relief, and the gap between economic performance and everyday living standards continues to widen.
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