Nigeria’s poverty rate has risen to 63 per cent in 2025, despite a slowdown in inflation, according to the World Bank.
It highlights the widening gap between macroeconomic stability and household welfare.
The figure was disclosed in the bank’s Nigeria Development Update (April 2026) titled “Nigeria’s Tomorrow Must Start Today: The Case for Early Childhood Development,” released in Abuja.
The report showed a steady rise in poverty levels from 56 per cent in 2023 to 61 per cent in 2024, before climbing further to 63 per cent in 2025—representing about 140 million Nigerians living below the poverty line.
According to the World Bank, the increase occurred even as inflation eased significantly during the period, with headline inflation dropping from 34.80 per cent in December 2024 to 15.15 per cent in December 2025, while food inflation also fell sharply.
However, the bank warned that lower inflation has not translated into improved living standards.
“Household incomes have not grown fast enough to offset still-elevated inflation, and poverty has yet to begin declining,” the report stated.
It added that persistent poverty reflects the lingering effects of earlier inflation shocks that had already eroded real incomes before recent price moderation.
The report also pointed to structural weaknesses in the economy, noting that growth in agriculture where more than half of Nigeria’s poor are employed has lagged behind services and industry, limiting the impact of economic expansion on poverty reduction.
The World Bank projected a gradual decline in poverty from 2026, driven by stabilising macroeconomic conditions and easing food prices, but warned that progress would remain slow without stronger job creation and inclusive growth.
It further emphasised that investments in early childhood development would be critical to breaking the cycle of poverty and improving long-term productivity.
Speaking at the report’s launch, Fiseha Haile, the World Bank’s Lead Economist for Nigeria said poverty remains “elevated despite recent macroeconomic improvements,” stressing that inflation, though declining, still erodes real incomes and welfare gains.
He added that sustainable poverty reduction would depend not only on growth, but on the quality of growth especially its ability to generate jobs and raise incomes among vulnerable households.