In its latest April 2025 Poverty and Equity Brief for Nigeria, the World Bank has once again sounded the alarm on the dire socio-economic landscape gripping the nation, urging the Federal Government to urgently adopt inclusive reforms aimed at shielding the poorest citizens from the punishing effects of rising inflation.
The global financial institution emphasized that Nigeria’s fight against poverty hinges critically on policies that support productive employment for all citizens, not just short-term palliatives. According to the Bank, meaningful poverty reduction is now threatened by structural weaknesses in the economy, over-reliance on oil revenues, and national fragility — factors that, if left unaddressed, could push millions more Nigerians below the poverty line within the next five years.
While acknowledging the boldness of President Bola Ahmed Tinubu’s economic reforms — particularly the removal of fuel subsidies and the liberalization of the naira upon his assumption of office on May 29, 2023 — the World Bank noted that these reforms have contributed to a sharp rise in inflation, thereby deepening the hardship faced by ordinary Nigerians.
Data from the National Bureau of Statistics shows that inflation inched up to 24.23 percent in March 2025, from 23.18 percent the previous month, marking the smallest increase since mid-2023 but still signaling severe economic pressure on household incomes and purchasing power.
To cushion the impact, the Federal Government launched a temporary cash transfer program targeting 15 million households. However, the World Bank observed that the initiative has faced significant implementation delays, thereby limiting its effectiveness in mitigating the immediate effects of inflation on the most vulnerable populations.
The Bank’s recommendations come on the heels of its earlier Africa’s Pulse report, which painted a bleak outlook for Nigeria unless urgent steps are taken to address foundational economic constraints and invest in human capital.
As Nigeria stands at a crossroads, the challenge before President Tinubu’s administration is not just to maintain the momentum of reform, but to ensure that its benefits trickle down equitably. The road to national prosperity, the World Bank insists, must be paved with inclusive policies that not only stabilize the economy but also empower citizens to thrive through productive, dignified work.