The World Bank warned Wednesday that Nigeria risks losing the benefits of its recent bold economic reforms, as an estimated 139 million citizens are now living in poverty, an alarming increase largely driven by persistent inflation and severely eroded purchasing power.
The figure was disclosed by Mathew Verghis, World Bank Country Director for Nigeria, at the launch of the October 2025 Nigeria Development Update (NDU) titled, “From Policy to People: Bringing the Reform Gains Home.”
Verghis noted that while the macroeconomic stabilization efforts—including the removal of the petrol subsidy and exchange rate reforms—have begun to stabilize the economy, the positive outcomes have yet to translate into better welfare for the average citizen.
Poverty Rate Surges
The World Bank’s estimate of 139 million people in poverty in 2025 reflects a sharp increase from 129 million recorded in April 2025, and a drastic surge from 87 million in 2023. The Bank attributed the ongoing hardship to a combination of prior policy missteps, external shocks like COVID-19, and the pressures from ongoing economic adjustments.
Verghis underscored the urgency of converting policy success into tangible relief for households:
“Despite these stabilisation gains, many households are still struggling with eroded purchasing power. Poverty, which began to rise in 2019 due to policy missteps and external shocks such as COVID-19, has continued to increase even after the reforms. In 2025, we estimate that 139 million Nigerians live in poverty,” he stated.
The World Bank official emphasized that failure to distribute the reform gains would jeopardize Nigeria’s long-term economic trajectory. “The challenge is clear: to translate the gains from the 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 added.
