REVEALED: More Nigerians to Sink into Poverty by 2027 - World Bank Raises Alarm |SEE REASONS

.... World Bank predicts sharp rise in poverty under Nigeria's fragile economy as oil dependence and weak reforms fuel decline

April 24, 2025 | All Facts Newspaper

In a damning revelation that underscores Nigeria's economic instability, the World Bank has projected a significant increase in the country's poverty rate, predicting that millions more Nigerians will become poor by 2027 if structural issues remain unaddressed.

The forecast is contained in the latest Africa's Pulse report released during the ongoing Spring Meetings of the International Monetary Fund (IMF) and the World Bank in Washington, DC.

According to the report, Nigeria-Africa's largest economy-is now among resource-rich, fragile nations projected to experience a 3.6 percentage point surge in poverty over the five-year period between 2022 and 2027. This grim forecast suggests that instead of improving the welfare of its people, Nigeria's economic direction is pushing more citizens below the poverty line.

"Poverty in resource-rich, fragile countries-including large economies like Nigeria and the Democratic Republic of Congo-is projected to increase by 3.6 percentage points,ÔÇØ the report stated.

The World Bank's analysis links Nigeria's worsening poverty outlook to over-reliance on crude oil, weak fiscal structures, and persistent national fragility. Despite a slight recovery in non-oil sectors in late 2024, the gains are insufficient to reverse the deep-rooted economic vulnerabilities.

The report notes that Sub-Saharan Africa remains the epicenter of global extreme poverty, housing 80% of the world's 695 million extreme poor in 2024. Startlingly, half of the region's 560 million poor people are concentrated in just four countries, with Nigeria among the top.

In contrast, non-resource-rich nations in the region are experiencing faster poverty reduction, benefiting from high agricultural commodity prices and stronger economic diversification.

Meanwhile, resource-dependent countries like Nigeria continue to suffer from declining oil revenues, poor economic planning, and political instability-factors the report says are preventing inclusive growth and long-term development.

"Resource wealth combined with fragility or conflict is associated with the highest poverty rates-averaging 46% in 2024,ÔÇØ the report highlighted, adding that this figure is 13 percentage points higher than in more stable, resource-rich countries.

The World Bank is urging Nigeria to take urgent steps to improve fiscal management, rebuild trust in governance, and create a stronger fiscal contract with its citizens-a move seen as critical to reversing the poverty trend and promoting inclusive development.