Job Creation Key As 79% Remain Poor Despite Reforms—World Bank

The World Bank has expressed disappointment over the continued poverty level which has exposed 79 per cent of Nigerians into vulnerable state.

While it noted that under the new Country Partnership Framework, job creation is the single most important pathway out of poverty.

Nigeria, nearly three years after the federal government embarked on economic reforms, about 79 per cent of Nigerians remain either poor or vulnerable to slipping into poverty. This has underscored the scale of the country’s social and economic challenges, according to newly released World Bank documents.

The findings are contained in the World Bank’s Country Partnership Framework (CPF) for Nigeria (2026–2032) and its accompanying Streamlined Country Diagnostic (SCD), which set out the institution’s seven-year strategy to support Nigeria’s development priorities through private sector-led growth, job creation and poverty reduction.

According to the diagnostic report, 33 per cent of Nigerians are classified as ultra-poor, meaning they are unable to meet minimum food requirements, while 61 per cent live below the national poverty line. The report further noted that 79 per cent of the population is either poor or at risk of falling back into poverty.

While acknowledging that recent macroeconomic reforms have stabilised key economic indicators and restored investor confidence, the World Bank said those gains have yet to improve the living conditions of millions of Nigerians.

It attributed Nigeria’s prolonged economic struggles to years of structural weaknesses, policy inconsistencies, heavy dependence on crude oil and repeated external shocks, factors that have left millions trapped in poverty.

The report estimated that about 139 million Nigerians currently live below the national poverty line, with poverty most prevalent in the northern states.

It also highlights critical development gaps, noting that more than 86 million Nigerians still lack access to electricity, while between three and four million young people enter the labour market every year with limited employment opportunities.

“Despite recent bold reforms stabilising the economy and laying the groundwork for the Renewed Hope Agenda, significant structural challenges remain,” the Bank said.

It stressed that maintaining macroeconomic, fiscal and structural reforms would be essential to lowering inflation, creating more fiscal space and ensuring that economic stabilisation ultimately translates into higher living standards.

The report reviewed major policy measures introduced by the Tinubu administration, including the removal of petrol subsidies, exchange rate liberalisation, tighter monetary policy and ongoing tax reforms.

According to the Bank, those policies have started to improve Nigeria’s macroeconomic outlook. Economic growth accelerated from 3.5 per cent in the first half of 2024 to 3.9 per cent during the same period in 2025, while foreign reserves climbed above $42 billion, fiscal deficits narrowed and investor confidence improved.

However, it warned that persistently high inflation continues to erode household purchasing power, particularly among low-income families.

“High inflation, though declining, continues to erode real incomes, particularly for the poor. Social protection efforts to support the most vulnerable have been slow and uneven in their rollout,” the report noted.

The World Bank also cautioned that institutional weaknesses, poor policy coordination and inadequate budget transparency remain significant risks to Nigeria’s recovery. It said sustained implementation of reforms, supported by deeper structural changes, would be necessary to improve the country’s medium-term economic prospects.