The World Bank has reported that an estimated 139 million Nigerians, nearly two-thirds of the population, still live in poverty, despite recent economic reforms and signs of macroeconomic improvement under President Bola Tinubu’s administration.
The findings were published in the mid-year edition of the Nigeria Development Update, released in Abuja on Wednesday, October 8, 2025.
According to Mathew Verghis, World Bank Country Director for Nigeria, the country has made commendable progress in implementing bold reforms, particularly in exchange rate unification and the removal of petrol subsidies.
However, he cautioned that the benefits of these reforms have yet to translate into tangible improvements in living standards for most Nigerians.
“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.”
The report highlights that while Nigeria’s economy expanded by 3.9% year-on-year in the first half of 2025, up from 3.5% in the same period of 2024, many households continue to face severe hardship. Food inflation remains a major concern, with poor households spending up to 70% of their income on food.
The cost of a basic food basket has reportedly increased fivefold between 2019 and 2024, exacerbating food insecurity nationwide.
Despite these challenges, the World Bank acknowledged improvements in Nigeria’s external position. Foreign reserves have surpassed $42 billion, and the current account surplus has risen to 6.1% of GDP, driven by higher non-oil exports and reduced oil imports.
On the fiscal front, the federal deficit is projected to remain stable at 2.6% of GDP in 2025, while public debt is expected to decline for the first time in over a decade, from 42.9% to 39.8% of GDP.
The World Bank praised the Tinubu administration for taking “important steps toward stabilising the economy”. Still, it stressed that further action is necessary to ensure that macroeconomic gains translate into inclusive growth and poverty reduction.
The report recommends targeted social protection programs, enhanced public service delivery, and sustained investment in agriculture and infrastructure to address the underlying causes of poverty.
The Nigeria Development Update is a biannual publication that provides an overview of the country’s economic performance and policy direction.
It serves as a key resource for policymakers, development partners, and analysts tracking Nigeria’s progress toward sustainable development.
