Even as Nigeria’s economy posts its strongest growth in years, a stark World Bank report released on Tuesday has exposed a troubling paradox: 139 million citizens, more than two-thirds of the population—now scrape by below the international poverty line of $2.15 a day, up sharply from 81 million in 2019. The Nigeria Development Update (NDU), unveiled at the Federal Ministry of Finance, attributes the escalation to lingering effects of COVID-19, the 2023 naira float, and subsidy removals that spiked living costs, while praising President Bola Tinubu’s reforms for stabilizing macro indicators. Yet, in a nation where 40 percent of households rely on subsistence farming and informal trade, the report warns that without targeted safety nets, this “rebound for the few” could ignite social unrest, echoing August’s #EndBadGovernance protests that claimed 13 lives.
The document, based on the latest Multi-Topic Household Survey data from 2023-2024, paints a granular picture of hardship: Rural poverty stands at 52 percent versus 31 percent in cities, with northern states like Borno and Sokoto hitting 70 percent rates due to conflict and floods that wiped out 20 percent of harvests in September. Food insecurity affects 26 million, per complementary UN data, as maize prices doubled to N1,200 per measure in markets like Kano. Finance Minister Wale Edun, speaking at the launch, acknowledged the “pain points” but highlighted upsides: GDP expanded 3.9 percent in the first half of 2025, foreign reserves topped $42 billion, and non-oil exports like cocoa surged 50 percent. “Stability is here, but equity must follow,” Edun said, pledging N50 billion more for cash transfers to 15 million households by year-end.
This angle reveals the human cost behind the numbers, focusing on how policy shocks hit the vulnerable hardest. The naira’s 70 percent devaluation since June 2023 tripled import costs for essentials like rice and medicine, pushing 58 million more into poverty per the Bank’s calculations. Women and youth bear the brunt: 45 percent of female-headed households report skipping meals, while unemployment among 15-24-year-olds lingers at 53 percent, fueling urban migration and crime spikes in Lagos slums. The African Democratic Congress (ADC), in a statement Thursday, slammed Tinubu’s administration for “flawed benchmarks” that ignore Nigeria’s informal economy—employing 80 percent of workers and called for a poverty audit, arguing the $2.15 line undercounts costs in a high-inflation context (34.2 percent peak in 2024).
What deepened the divide? The report critiques over-reliance on consumption-based metrics from the 2018-2019 survey, outdated amid forex crises that trapped $800 million in airline funds and hiked transport fares 40 percent. Yet, fiscal wins shine: The deficit holds at 2.6 percent of GDP, debt dips to 39.8 percent, and services/ICT grew 5.2 percent, creating 1.2 million jobs in tech hubs. World Bank Country Director Shubham Chaudhuri urged “bringing gains home” via three pillars: Streamlining agriculture supply chains to cut food inflation from 40 percent, scaling digital taxes for N2 trillion extra revenue, and expanding NELFUND scholarships to 10 million students by 2026.
When did the tipping point hit? Post-2023 reforms marked the surge, with poverty jumping 10 percentage points in 2024 alone, per NBS updates. The NDU’s October timing aligns with Tinubu’s independence broadcast, where he touted “the worst is over,” but critics like opposition leader Atiku Abubakar counter that without reversing subsidy cuts—saving $10 billion but costing households N500 monthly on fuel—the gap widens.
Where do interventions lag? Northern rural areas top the list, with Borno’s IDP camps housing 2.5 million seeing 65 percent extreme poverty; southern urban fringes like Ogun’s industrial belts fare better at 25 percent but face wage stagnation.
Pilot programs in Kaduna, distributing N25,000 monthly to 500,000 families, cut dropout rates 15 percent, but scaling nationwide requires $5 billion annually, the Bank estimates.
How to pivot? Recommendations include public-private pacts for $100 billion infrastructure yearly, prioritizing solar-powered irrigation in flood-prone zones and blockchain for transparent aid distribution. The IMF echoes this, projecting 3.4 percent growth in 2025 if reforms stick, but warns a 1 percent oil price drop could add 5 million to the poor.
Why confront it head-on? Beyond N1.5 trillion in annual productivity losses, unchecked poverty risks derailing Tinubu’s $1 trillion GDP goal by 2030 and amplifying insecurity—banditry in Zamfara displaced 200,000 this year, per Crisis Group. As Chaudhuri noted, “Nigeria’s momentum is real, but for 139 million, it’s a distant echo.” With budget debates looming, the report’s clarion call: Turn numbers into lifelines, or watch stability fray.

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