Nigeria: Poverty on the Rise With 47% of Population Below $2.15 a Day

An Economic Crisis Fueled by Inflation and Currency Devaluation

Nigeria is going through a period of major economic difficulties, marked by galloping inflation and the devaluation of the naira. Despite efforts to stimulate economic growth, it is struggling to keep pace with population growth, thus exacerbating poverty.

According to the World Bank’s “Macro Poverty Outlook Country-by-country Analysis and Projections for the Developing World” report released in October 2024, 47% of the Nigerian population now lives below the international poverty line of $2.15 per day , up from 38.8% in 2023. This increase is attributed to insufficient incomes of workers, although annual inflation is expected to decline slightly, from 33.4% in July 2024 to 32.15% in August 2024 .

A Devastating Social Impact

The surge in poverty has pushed an additional 14 million Nigerians into precarious situations by 2024, the report said. Several aggravating factors include:

• Security challenges.
• Weak economic growth.
• A continued rise in food insecurity.

Economic reforms implemented by President Bola Tinubu , such as the removal of energy subsidies , have also contributed to the rising cost of living, sparking popular protests across the country.

Necessary Compensatory Measures and Reforms

To mitigate the effects of the crisis, the government has introduced several measures:

• Increase in the minimum wage .
• Revaluation of civil servant salaries .
• Relaunch of the temporary cash transfer programme targeting 15 million beneficiaries and their families .

However, the World Bank anticipates a worsening of the situation with a poverty rate that could reach 52% by 2026 , unless structural reforms are implemented. These reforms should aim to:

• Protecting the most vulnerable against the effects of inflation .
• Stimulating economic opportunities through more productive jobs .

Conclusion: A Social and Economic Emergency to Overcome

Nigeria, Africa’s largest population, faces a monumental challenge in reversing the trend of rising poverty. Inclusive economic reforms, combined with targeted initiatives for the poorest, will be essential to lift millions of Nigerians out of poverty and ensure sustainable and equitable growth in the years to come.