The World Bank has raised alarm over rising poverty in Nigeria, warning that recent economic reforms risk failing if they do not translate into tangible improvements for ordinary citizens.
Speaking in Abuja on Wednesday at the launch of the October 2025 Nigeria Development Update (NDU), World Bank Country Director for Nigeria, Mathew Verghis, said approximately 139 million Nigerians now live in poverty. This marks a sharp increase from 129 million in April 2025 and 87 million in 2023.
The NDU, a biannual report by the World Bank, tracks Nigeria’s economic trends, policy outcomes, and key development challenges.
Verghis commended Nigeria’s recent reforms in the exchange rate and petroleum subsidy regimes, describing them as “foundational” measures that could reshape the country’s long-term economic trajectory. He likened the current reform period to India’s historic policy shifts in the early 1990s, stressing that such opportunities must be seized decisively.
“Over the last two years, Nigeria has commendably implemented bold reforms… These are the foundations on which the country has the opportunity to build a programme that can transform its economic trajectory,” he said.
The World Bank chief noted that macroeconomic indicators were improving: growth is picking up, government revenues are rising, debt indicators are stabilising, foreign exchange markets are steadier, reserves are climbing, and inflation is easing.
“These results are exactly what you need to see in a stabilisation phase. These are big achievements, and many countries would envy them,” Verghis said.
However, he cautioned that these gains had yet to improve living conditions for ordinary Nigerians. Many households continue to struggle with high costs of living, particularly rising food prices.
“Food inflation affects everybody, particularly the poor. Persistent high prices could erode political support for reforms and hinder recovery,” he warned.
The report identifies three key priorities to ensure reforms benefit Nigerians: reducing inflation, using public resources more effectively, and expanding social protection coverage for the poor and vulnerable. Verghis stressed that monetary and fiscal policies must be complemented by structural reforms to address inefficiencies in food production and distribution.
The World Bank also urged Nigeria to strengthen public financial management to ensure that government spending delivers measurable development impact, and to expand the national social safety net to shield the poorest from economic shocks.
Verghis concluded that the Bank remains committed to supporting Nigeria’s reform agenda through policy advice, technical assistance, and financing, but stressed that success would depend on sustained political will and inclusive dialogue.
“The challenge is clear: to translate the gains from stabilisation reforms into better living standards for all. These are not abstract ideas but practical steps that can turn macro stability into better livelihoods,” he said.
The NDU launch brought together government officials, private sector leaders, development partners, civil society representatives, and members of the media for discussions on Nigeria’s economic outlook.
While acknowledging Nigeria’s progress in stabilising the economy, the World Bank emphasised that the long-term success of reforms depends on ensuring that benefits reach the citizens who need them most.