World Bank, largely believed to be behind the belt tightening economic policies in Nigeria says an estimated 14 million more Nigerians have been pushed into poverty in 2024, due to stagnant income.
Despite the constant increase in the prices of goods and service, and most recently, petrol price increase, many employers of labour have failed to raise their employee wages.
This is contained in the World Bank report titled Macro Poverty Outlook: Country-by-Country Analysis and Projections for the Developing World.
The report reveals that nearly 47 per cent of Nigerians now live below the international poverty line of $2.15 per day, as economic pressures and rapid population growth further strain the nation’s resources.
It read, “Labour incomes have not kept pace, pushing an additional 14 million Nigerians into poverty in 2024. An estimated 47 per cent of Nigerians now live in poverty (or below the international poverty line of $2.15 2017 PPP).”
To address the swelling poverty rate, the Nigerian government has launched cash assistance programs aimed at 15 million households, with each household slated to receive N75,000 across three installment, reaching approximately 67 million individuals.
Despite these measures, the World Bank projects poverty to reach 52 per cent by 2026 if economic reforms are not intensified to protect vulnerable Nigerians from inflation and create more productive job opportunities.
The World Bank noted, “Poverty is estimated at 52% in 2026. Reforms to protect the poorest against inflation and boost livelihoods through more productive work are key for Nigerians to escape poverty. A tight monetary stance while avoiding reliance on ways and means remains crucial for moderating inflation”
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 curb inflation, these efforts have yet to fully restore purchasing power, the report notes.
The World Bank stressed that macroeconomic stabilization alone will not enable Nigeria to achieve its growth potential.
“While macro stabilization is essential and currently underway, by itself it is insufficient to enable Nigeria to reach its growth potential. Sustained efforts and the establishment of a credible track record are necessary to achieve sustained progress.
“Economic growth has struggled to keep pace with population growth, contributing to poverty exacerbated by double-digit inflation,” the report noted.
