The World Bank has highlighted that stagnant labor incomes have driven an additional 14 million Nigerians into poverty this year, as detailed in its recent report, *Macro Poverty Outlook: Country-by-Country Analysis and Projections for the Developing World*. According to the report, nearly 47% of Nigerians now live below the international poverty line of $2.15 per day, with economic pressures and population growth compounding the strain on resources.
In response, the Nigerian government has introduced a cash assistance program targeting 15 million households, each set to receive N75,000 in three installments to aid approximately 67 million individuals. However, the World Bank warns that without intensified reforms to mitigate inflation and generate more productive employment opportunities, poverty levels could reach 52% by 2026.
The report further notes that while the Central Bank of Nigeria (CBN) has raised the monetary policy rate by 850 basis points from February to September 2024 and increased the cash reserve ratio to counter inflation, these measures have not yet restored purchasing power for most Nigerians.
The World Bank stresses that macroeconomic stabilization alone will not enable Nigeria to meet its growth potential. Alongside stabilization efforts, sustained reforms and a credible track record are essential to achieving meaningful progress. Economic growth continues to fall behind population growth, worsening poverty amidst persistent double-digit inflation. The report underscores the need for a comprehensive strategy to strengthen resilience and establish sustainable pathways out of poverty for millions of Nigerians.