Nigeria's Poverty Crisis Worsens: 129 Million Citizens Trapped, 14 Million More Fall Into Poverty Under Tinubu

Nigeria's Poverty Crisis Worsens: 129 Million Citizens Trapped, 14 Million More Fall Into Poverty Under Tinubu

A staggering 129 million Nigerians are now living in poverty, with 14 million more citizens falling into poverty in just the last year, according to the World Bank's latest Nigeria Development Update report. This stark increase brings the official percentage of poor Nigerians to 56%, up from 40.1% in 2018.

The report attributes this surge to the country's struggling growth record, with real GDP per capita failing to recover from the 2016 oil price-induced recession. Nigeria's economic growth has been too slow to outpace inflation, resulting in rising poverty. Since 2018, the share of Nigerians living below the national poverty line is estimated to have risen sharply from 40.1% to 56.0%.

The World Bank notes that inflation has forced millions of Nigerians into hunger, with large price increases across almost all goods diminishing purchasing power. Being employed no longer guarantees escape from poverty, as many jobs are unproductive and unremunerative. Nigeria's young and growing population requires jobs that harness the country's potential 'demographic dividend' to drive growth.

Several shocks have contributed to the poverty crisis, including the COVID-19 recession, natural disasters like flooding, growing insecurity, the high cost of the demonetization policy in Q1 2023, high inflation, and low economic growth. These factors have compounded the effects of previous domestic policy missteps, particularly rising inflation, eroding the purchasing power, especially of urban households, pushing many into poverty.

While poverty remains a rural phenomenon, it has also spread significantly to urban areas. Currently, 31.3% of urban dwellers live in poverty, up from 18% in 2018. This trend underscores the need for targeted interventions to address urban poverty.

The government is ramping up cash transfer programs to support economically insecure households. However, more comprehensive solutions are required to address the root causes of poverty. The World Bank's report highlights the urgent need for sustainable economic growth and effective poverty reduction strategies to address Nigeria's worsening poverty crisis.

Many Nigerians have lamented increased hardship under President Bola Tinubu since his inauguration on May 29, 2023, following the removal of fuel subsidies and flotation of the foreign exchange. With poverty projected to continue rising, Nigeria's economic insecurity has deepened and broadened, pushing more citizens into poverty.

As Nigeria struggles to address its poverty crisis, international organizations and local stakeholders are calling for collaborative efforts to implement policies that promote economic growth, job creation, and social protection. The World Bank's report serves as a stark reminder of the need for urgent action to alleviate poverty and ensure a more prosperous future for Nigerians.