Over 106 Million Nigerians in Extreme Poverty as World Bank Warns of 3.6% Rise by 2027

The World Bank has issued a stark warning that Nigeria’s poverty rate is projected to rise by 3.6 percent over the next five years.

The country currently accounts for 19 percent of Sub-Saharan Africa’s extremely poor population and 15 percent of the world’s poorest people.

According to the latest edition of the World Bank’s Africa’s Pulse report, poverty in Nigeria will worsen through 2027, largely driven by overdependence on natural resources, weak fiscal institutions and national fragility.

The bank noted that Nigeria’s economic recovery while visible in the non-oil sector, remains insufficient to deliver broad-based poverty alleviation.

The World Bank stated that over 106 million Nigerians now live in extreme poverty, defined as surviving on less than $2.15 per day.

This figure places Nigeria at the top of the poverty chart in Sub-Saharan Africa, followed by the Democratic Republic of Congo, Ethiopia and Sudan.

Collectively, these four countries account for half of the region’s poor population.

In its report, the bank said Sub-Saharan Africa remains the global epicenter of extreme poverty, housing 80 percent of the world’s 695 million extremely poor people.

The region’s economic growth is projected to reach 3.5 percent in 2025 and 4.3 percent by 2027 but that pace is not fast enough to make meaningful progress in reducing poverty.

“This growth is mainly due to increased private consumption and investments as inflation cools down and currencies stabilise” the report stated. “However, growth is still not strong enough to significantly reduce poverty and meet people’s aspirations.”

The World Bank compared the outlook of resource-rich countries like Nigeria with non-resource-rich countries in the region, noting that the latter are expected to achieve faster poverty reduction due to better fiscal policies and improved governance structures.

In 2014, the bank reported that 89 million Nigerians, or 43.3 percent of the population, were multidimensionally poor. Among them, 53 million lived in severe poverty with inadequate access to education, healthcare and essential living standards.

A decade later, the poverty burden has intensified with millions more falling below the poverty line.

To reverse this trend, the World Bank recommends that Nigeria strengthen fiscal management, improve public service delivery and rebuild trust between citizens and the state.

It also emphasized the need to diversify the economy beyond oil and gas and address structural imbalances that hinder inclusive growth.

The report underscores the urgent need for reforms that prioritize long-term poverty alleviation, inclusive development and resilience building, particularly for vulnerable groups.

With the International Monetary Fund also recently issuing a gloomy economic outlook for Nigeria, the World Bank’s findings reinforce growing concerns over the country’s socioeconomic trajectory. Without decisive reforms, Nigeria risks deeper inequality and economic stagnation despite its potential for growth.