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The World Bank has expressed concern that despite Nigeria’s recent economic reforms and signs of macroeconomic stability, about 139 million Nigerians are now living in poverty, warning that the country could lose its reform momentum if these gains fail to improve citizens’ welfare.
The bank’s Country Director for Nigeria, Mathew Verghis, made this known on Wednesday in Abuja during the launch of the October 2025 Nigeria Development Update (NDU) titled, ‘From Policy to People: Bringing the Reform Gains Home.’
The NDU, a biannual World Bank report, reviews Nigeria’s economic trends, policy outcomes, and development challenges.
Verghis, who assumed office three months ago, praised Nigeria’s bold steps in reforming the foreign exchange system and petrol subsidy regime, describing them as foundational reforms capable of reshaping the country’s long-term growth path.
“Over the last two years, Nigeria has commendably implemented bold reforms, notably around the exchange rate and petrol subsidy. These are the foundations on which the country can build a programme that transforms its economic trajectory,” he said.
He compared Nigeria’s current reform phase to India’s landmark policy changes of the early 1990s, stressing that such rare opportunities must be sustained to avoid backsliding.
Verghis noted that the reforms were already producing positive outcomes, including rising revenues, improved debt indicators, stabilising foreign exchange markets, growing reserves, and easing inflation.
“These results are exactly what you expect in a stabilisation phase. These are big achievements, and many countries would envy them,” he said.
However, the World Bank official warned that these gains had not yet translated into better living conditions.
“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.
This figure represents a sharp rise from 129 million in April 2025 and 87 million in 2023, highlighting worsening economic hardship despite reform efforts.
According to the report, Nigeria must focus on three key priorities to ensure reform benefits reach citizens: reducing inflation, improving the effectiveness of public spending, and expanding social protection coverage for vulnerable groups.
Verghis emphasised that tackling food inflation should be central to government policy, warning that persistently high food prices could undermine public support for reforms and slow recovery.
“Food inflation affects everybody, particularly the poor. Persistent differences between Nigeria’s inflation rate and those of its trading partners will pressure the exchange rate and create a vicious cycle. Lower inflation will also allow interest rates to come down and support growth,” he said.
While commending the Central Bank of Nigeria’s tight, data-driven monetary stance and the government’s fiscal restraint, he said these alone were not enough to reduce inflation rapidly. He called for structural reforms in food production, distribution, and market systems to address deep-rooted inefficiencies.
The World Bank also urged Nigeria to strengthen public financial management systems to ensure effective use of resources and expand the national social safety net to protect the poorest citizens during the ongoing economic transition.
Verghis reaffirmed the Bank’s commitment to supporting Nigeria’s reform agenda through policy advice, technical assistance, and financial support but stressed that success would depend on strong political will and inclusive dialogue.
“The challenge is clear: to translate the gains from stabilisation reforms into better living standards for all. These are not abstract ideas but practical steps that can turn macro stability into improved livelihoods,” he said.
The launch of the NDU was attended by senior government officials, private sector leaders, development partners, civil society representatives, and the media, who discussed Nigeria’s economic outlook and policy priorities.
The World Bank concluded that while Nigeria has made progress in stabilising its economy, the true test lies in ensuring that ordinary citizens feel the benefits of these reforms in their daily lives.
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