The World Bank has reported that 139 million Nigerians continue to live in poverty as food inflation and insecurity remain major challenges under President Bola Ahmed Tinubu’s administration.
The global financial institution made this known in its Nigeria Development Update (NDU) report, which was released in Abuja on Wednesday. While commending the federal government for embarking on bold reforms, the Bank stressed that much still needs to be done to improve the living standards of Nigerians.
According to Mathew Verghis, the World Bank Country Director for Nigeria, the nation is at a crucial point where the benefits of its reforms must begin to reach ordinary citizens.
“In 2025, we estimate that 139 million Nigerians live in poverty,” Verghis said. “The challenge is clear: how to translate the gains from the reforms into better living standards for all.”
He acknowledged that Nigeria has, over the past two years, taken significant steps in implementing difficult but necessary economic changes, notably around the exchange rate system and the removal of petrol subsidies.
A statement published on the World Bank’s website alongside the Nigeria Development Update emphasized that despite the progress in reforms, many households still face economic hardship.
“Many households continue to face hardship, with poverty and food insecurity remaining high,” the report noted. “Food inflation remains a major concern. Poor households, who spend up to 70% of their income on food, have seen the cost of a basic food basket rise fivefold between 2019 and 2024.”
The Bank praised the Tinubu-led government for taking “important steps toward stabilizing the economy,” but warned that more action is required to ensure that the results of these reforms reflect in the quality of life of citizens.
Economic Performance Shows Improvement
According to the report, Nigeria’s economy expanded by 3.9% year-on-year in the first half of 2025, compared to 3.5% in the same period of 2024. This growth, the World Bank explained, was driven by stronger performances in services and non-oil industries, combined with improvements in oil production and agriculture.
The Bank also stated that the country’s external position has strengthened. Foreign reserves have exceeded $42 billion, while the current account surplus has risen to 6.1% of GDP, supported by higher non-oil exports and lower oil imports.
On the fiscal side, the World Bank highlighted that despite lower oil prices, Nigeria’s federal deficit is projected to stand at 2.6% of GDP in 2025, nearly unchanged from 2024. Meanwhile, public debt is expected to decline for the first time in over a decade, dropping from 42.9% to 39.8% of GDP.
These indicators, the report noted, show progress toward macroeconomic stability and fiscal discipline, although the benefits are yet to trickle down to the majority of Nigerians.
Poverty and Inflation Still Major Threats
Despite the positive economic trends, the World Bank underscored that poverty levels and food inflation remain alarmingly high, particularly for low-income households. It emphasized that poor Nigerians spend most of their earnings on food, leaving them vulnerable to rising prices and economic shocks.
The Bank also warned that unless social protection measures are strengthened, many Nigerians may remain excluded from the gains of the reforms, especially those in rural and conflict-affected regions.
“Nigeria has taken important steps toward stabilising its economy through recent policy reforms,” the report stated. “But more needs to be done to ensure these gains translate into better living standards for its citizens.”
Analysts believe that while Tinubu’s administration has succeeded in addressing structural economic distortions, it now faces the crucial task of ensuring that growth is inclusive and sustainable, especially in tackling unemployment, insecurity, and rising living costs.
