The World Bank has called on the Nigerian government to ensure that recent macroeconomic reforms result in tangible improvements in the living standards of its citizens, as new figures estimate that 139 million Nigerians are currently living in poverty.
Speaking at the launch of the latest Nigeria Development Update (NDU) report in Abuja on Wednesday, the World Bank Country Director for Nigeria, Mr. Mathew Verghis, commended the government’s efforts in implementing major policy changes—particularly the removal of petrol subsidies and the unification of exchange rates.
“Over the last two years, Nigeria has implemented major reforms around the exchange rate and petrol subsidy. These policies have laid the foundation for transforming the country’s economic trajectory for decades to come,” Verghis said.
According to the World Bank, these reforms are already beginning to yield positive macroeconomic indicators, including increased government revenues, improved foreign exchange stability, rising reserves, and a gradual decline in inflation.
“Growth has picked up, revenues have risen, debt indicators are improving, the FX market is stabilising, reserves are rising, and inflation is finally beginning to come down. These are major achievements, and many countries would envy them,” Verghis noted.
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Despite these positive developments, Verghis warned that the benefits have yet to reach the majority of Nigerians, pointing to the continued high poverty levels as a pressing concern.
“In 2025, we estimate that 139 million Nigerians live in poverty. The challenge is clear: how to translate reform gains into better living standards for all,” he said.
The new report, titled “From Policy to People: Bringing the Reform Gains Home,” presents a three-pronged strategy for sustaining Nigeria’s economic momentum: reducing inflation, improving public spending efficiency, and expanding social safety nets.
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Verghis highlighted food inflation as a critical issue that disproportionately affects the poor and risks undermining public support for the reform agenda.
“Food inflation affects everyone but hits the poor the hardest. It also threatens to undermine political support for reforms. Tight monetary policy is essential, but it must be complemented by structural measures that tackle supply and market bottlenecks,” he said.
He also called for stronger safety net programmes and better resource management to mitigate the impact of economic hardship and promote inclusive growth.
“These are not abstract ideas — they are practical steps that can turn macro-stability into improved livelihoods,” Verghis emphasized.
The World Bank reaffirmed its commitment to supporting Nigeria’s economic reform efforts through continued policy advice, technical assistance, and financial support, aimed at fostering long-term development and shared prosperity.
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