The World Bank has issued a sobering outlook on the economic trajectory of Nigeria and other Sub-Saharan African nations, predicting a marked increase in poverty levels leading up to 2027. In its newly released Africa’s Pulse report, the global financial institution attributes the projected deterioration to a combination of macroeconomic instability, unsustainable debt levels, weak policy frameworks, and intensifying climate shocks.
According to the report, Nigeria remains particularly vulnerable, with over 40% of the population already living below the national poverty line and millions more on the brink of extreme deprivation. Structural inefficiencies, including chronic underinvestment in human capital, inadequate social protection, and a deteriorating exchange rate regime, have further exacerbated economic fragility.
The World Bank also flagged high inflationary pressures, especially in food and energy prices, as key drivers of household vulnerability. The depreciation of the naira, coupled with subsidy removals and rising global fuel costs, continues to erode purchasing power for low-income households.
In stark terms, the report warns that if current trends persist without decisive policy reforms and improved governance, over 90 million Nigerians could be living in poverty by 2027, representing one of the largest concentrations of poor people globally.
Experts recommend urgent interventions, including:
A comprehensive fiscal consolidation plan focused on revenue mobilization and efficiency in public spending.
Investment in agriculture and rural infrastructure to enhance food security.
Expansion of targeted social safety nets and conditional cash transfers.
Strengthening of public institutions to improve accountability and service delivery.
The World Bank reiterated that while the demographic potential of Nigeria remains vast, failure to leverage this potential through inclusive growth policies could turn it into a long-term liability.
– MADMO News
