The World Bank reports that 46% of Nigeria’s population lives below the poverty line due to inflation outpacing wage growth. Despite Nigeria being Africa’s largest economy, economic growth has not translated to wealth for ordinary citizens. The gap between the rich and poor continues to widen as lawmakers are allocated large budgets for projects amid widespread economic hardship.
The World Bank has issued a stark warning regarding Nigeria’s economic situation, stating that nearly half the nation now lives in poverty. The bank’s May 2025 Nigeria Development Update reveals that 46 percent of Nigerians, roughly 107 million people, are below the international poverty line of $2.15 daily. This comes as inflation outpaces the country’s minimum wage, severely impacting purchasing power.
The report indicates that persistent inflation, coupled with sluggish economic growth, has pushed millions into poverty. Since 2018/19, around 40 million additional Nigerians have been added to this group, exacerbating existing hardships. The mere statistic of rising GDP fails to reflect the reality that the benefits are not reaching the average citizen.
Nigeria’s GDP per capita, at just 4.4% of Singapore’s and 30% of Botswana’s, underscores a significant gap in economic performance when compared to other nations, particularly those with more robust governance. The World Bank emphasized that despite theoretical economic growth, real prosperity is not filtering down to the population.
Furthermore, the report analyzed the allocation of resources, stating that if Nigeria’s economic output were distributed equally, each citizen would receive about N100,000 per month. However, this amount falls short for many residents in urban areas, where rising living costs continue to outstrip wage growth.
There’s a noticeable schism between the affluent political class and the rest of Nigerians, which only deepens as government officials maintain extravagant lifestyles. Recently, a federal lawmaker exposed the significant budgets allocated for ‘constituency projects’—funds often mismanaged or poorly accounted for following President Bola Tinubu’s removal of the fuel subsidy.
This revelation of lawmakers routinely receiving figures over N2 billion for projects (for Senators) and N1 billion (for House members) sparked public outcry. The comments illustrate a growing frustration with the entrenched culture of corruption and lack of transparency within Nigeria’s government, particularly as ordinary citizens face economic hardships while politicians enjoy lavish perks and privileges.
In summary, the World Bank’s report paints a grim picture of Nigeria’s socio-economic landscape. With nearly half the population living in poverty and economic growth largely benefiting the elite, a call for genuine reform becomes increasingly urgent. The disconnect between official GDP figures and the lived realities of the Nigerian people is alarming, highlighting the dire need for meaningful change to bridge this widening gap.
In conclusion, the World Bank’s report indicates dire economic conditions in Nigeria, highlighting that almost half the population lives in poverty, despite claims of overall economic growth. The vast income inequality and the disconnect between the wealthy elite and the ordinary citizens are becoming increasingly untenable. Without significant governmental reform and transparent allocation of resources, the socioeconomic landscape in Nigeria is unlikely to improve significantly.
Original Source: saharareporters.com
