The World Bank’s April 2025 Poverty and Equity Brief for Nigeria reveals that 75.5% of rural Nigerians live in poverty, underscoring stark inequality and economic hardship nationwide.
Based on recent national surveys, rural areas face significantly worse conditions than urban centers, where 41.3% of residents live below the poverty line. The report indicates that Nigeria’s economic stagnation, inflation, and structural issues have disproportionately impacted rural communities.
In 2018/19, before the COVID-19 pandemic, 30.9% of Nigerians lived below the international extreme poverty line of $2.15 per day (2017 PPP). Since then, economic shocks, insecurity, and soaring inflation have driven poverty rates higher, with projections estimating that 54% of Nigerians were impoverished by 2024.
Poverty remains unevenly distributed, with northern regions reporting a 46.5% poverty rate in 2018/19, compared to 13.5% in southern zones. The Gini index, measuring inequality, stood at 35.1, and the prosperity gap—indicating the factor by which incomes must increase to reach a $25 daily standard—was 10.2, surpassing most comparable nations.
Demographic disparities are stark. Children aged 0–14 face a 72.5% poverty rate, while 63.9% of females and 63.1% of males live below the $3.65 per day lower-middle-income poverty line.
Education levels heavily influence poverty: 79.5% of adults without formal education are poor, compared to 61.9% with primary education, 50.0% with secondary education, and 25.4% with tertiary education.
Multidimensional poverty indicators reveal further challenges: 30.9% of Nigerians survive on less than $2.15 daily, 32.6% lack access to basic drinking water, 45.1% have no adequate sanitation, and 39.4% live without electricity. Additionally, 17.6% of adults have not completed primary education, and 9.0% of households have at least one school-aged child not attending school.
Before COVID-19, poverty reduction was sluggish, declining by just 0.5% annually since 2010. Urban living standards for the poor have barely improved, and productive job opportunities remain scarce. Rural livelihoods, heavily dependent on subsistence agriculture, face low productivity and increasing climate-related challenges, compounded by Nigeria’s oil-dependent economy and limited diversification.
Since 2018/19, an estimated 42 million more Nigerians have fallen into poverty. Inflation, fueled by subsidy removals and currency reforms, has eroded purchasing power, particularly in urban areas, where labor incomes have not kept pace with rising costs. The World Bank projects that over half of Nigerians are now poor.
To address this crisis, the World Bank urges reforms to shield the poorest from inflation and enhance livelihoods through productive jobs. While recent government initiatives, such as cash transfers to 15 million households, show promise, progress is slow.
The report calls for robust social protection systems, increased investment in education, health, and infrastructure, and aggressive economic diversification beyond oil to foster sustainable job creation.
WHAT YOU SHOULD KNOW
The World Bank’s April 2025 report reveals a deepening poverty crisis in Nigeria, with rural areas and vulnerable groups bearing the brunt of economic hardship.
While the proposed economic reforms offer a way forward, their success hinges on overcoming governance challenges, mobilizing resources, and prioritizing the most important challenges.
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