June 29, 2025
The latest World Bank report—“Extreme Poverty is Rising Fast in Economies Hit by Conflict, Instability”—is a sobering reminder of a painful reality many Nigerians live with daily. Yet, for all its data and concern, the report fails to confront a hard truth: the very policies the World Bank has consistently championed may be fuelling the poverty it now laments.
Let’s call it what it is—economic prescriptions without context are dangerous. Nigeria, with over 220 million people, is not just battling inflation or a weak currency. We are fighting decades-long insecurity, institutional corruption, and economic sabotage. So, when institutions like the World Bank recommend sweeping policies like currency devaluation and fuel subsidy removal, the question isn’t just about economic theory. It’s about the human cost.
Devaluation: A Shortcut to Deeper Poverty
The devaluation of the naira is sold as a pathway to a stronger export market and a healthier economy. But in Nigeria’s context, where imports still dominate our consumption—everything from rice to pharmaceuticals—the immediate impact is catastrophic. Prices soar. Salaries shrink in value. Basic needs become luxuries. For the urban poor and rural farmers alike, it’s not abstract economics. It’s starvation.
What good is a competitive export economy when the people can’t afford food? What is the logic of currency adjustment when local production is stifled by insecurity, poor infrastructure, and unreliable power?
Subsidy Removal: The Breaking Point for the Poor
Removing fuel subsidies is another bitter pill often forced down our throats in the name of fiscal discipline. Yes, subsidies are imperfect. Yes, they are sometimes mismanaged. But for millions of Nigerians, that subsidy is the only shield from the heat of rising costs.
In a country where minimum wage remains stagnant, removing subsidies without first providing a robust safety net is not reform—it’s cruelty. Transportation, food, and school fees rise almost overnight. Families are forced to make impossible choices: feed their children or pay for medicine.
We must stop pretending that market discipline alone can save a nation already gasping for breath.
Development Must Be Grounded in Local Realities
The World Bank must accept that its one-size-fits-all playbook cannot be blindly applied to a complex, conflict-ridden society like Nigeria. Our issues require more than spreadsheets and technocratic solutions. They require a human-first approach—one that listens before prescribing, and understands before reforming.
The people most affected by these policies—those living on less than $2 a day—are rarely consulted. Their realities are footnotes in high-level meetings in Washington or Abuja. That must change.
A Smarter, Kinder Path Forward
The World Bank must embrace four key shifts:
- Incremental Reforms: Gradual, not sudden, changes that allow markets and people to adapt.
- Real Social Safety Nets: Not token cash transfers, but comprehensive systems that protect the vulnerable.
- Local Dialogue: Policies should be shaped with grassroots voices at the table—not just economists and consultants.
- Security First: Economic reform is impossible without tackling Nigeria’s deep-rooted conflict and instability.
Conclusion: People Must Come Before Policy
Poverty in Nigeria is not just an economic indicator—it is a lived, painful reality. If the World Bank truly seeks to help, it must go beyond economic orthodoxy. It must see Nigeria not just as a case study but as a country of human beings deserving of dignity, protection, and hope.
A more compassionate, context-sensitive approach isn’t just morally right—it’s the only strategy that will work. In the end, policies must not only balance budgets. They must also feed children, keep families whole, and help nations heal.
Anything less is failure disguised as reform.