A new report from the World Bank has revealed a staggering rise in poverty levels across Nigeria, particularly in rural areas, where over 75.5 percent of the population now lives below the poverty line. The findings, detailed in the World Bank’s April 2025 Poverty and Equity Brief for Nigeria, paint a sobering picture of growing economic hardship, increasing inequality, and the persistent underdevelopment plaguing the country.
According to the report, Nigeria is facing a critical poverty crisis that has been further worsened by inflation, insecurity, and economic stagnation, especially in remote and rural communities.
“Based on the most recent official household survey data from Nigeria’s National Bureau of Statistics, 30.9 percent of Nigerians lived below the international extreme poverty line of $2.15 per person per day in 2018/19, before the COVID-19 pandemic,” the report stated.
Stark Rural-Urban Divide
The World Bank emphasized that the situation is significantly more dire in rural Nigeria, where access to education, healthcare, electricity, and clean water remains limited or completely absent. Despite government efforts and economic reforms, the gap between the rural poor and their urban counterparts continues to widen.
The data shows that while poverty is also prevalent in urban centers, rural areas face far more severe deprivation. The report attributes this to ongoing challenges such as insecurity, lack of infrastructure, weak governance, and limited employment opportunities.
Regional Disparities Deepening
One of the most alarming aspects of the World Bank’s findings is the persistent regional inequality within Nigeria. The poverty rate in the northern geopolitical zones stood at 46.5 percent in 2018/19, more than three times higher than the 13.5 percent recorded in the southern zones.
The Bank noted that these disparities have remained largely unchanged over the years, despite multiple policy interventions. Inequality, as measured by the Gini index, was pegged at 35.1 in 2018/19, further highlighting the deep-rooted economic imbalance.
Nigeria’s Prosperity Gap Widens
The World Bank also introduced the concept of Nigeria’s “Prosperity Gap” — the average factor by which individual incomes need to be increased to achieve a standard of $25 per day. For Nigeria, this figure is 10.2, significantly higher than many of its peers in sub-Saharan Africa.
“This measure underscores the persistent economic divide in the country and reflects the scale of investment and reform needed to achieve inclusive growth,” the report said.
Children and the Uneducated Worst Affected
Demographic analysis within the report showed that the youngest Nigerians are among the hardest hit. A shocking 72.5 percent of children aged 0–14 years live in poverty, underlining the future consequences of current economic conditions.
The report also confirmed that education remains one of the strongest determinants of poverty. Nigerians without formal education had a poverty rate of 79.5 percent. The figures drop progressively with increased educational attainment: 61.9 percent for those with primary education, 50 percent for those with secondary education, and only 25.4 percent among those with tertiary education.
“Investments in human capital, particularly education, are vital to reversing the poverty trend and promoting upward mobility,” the Bank advised.
Multidimensional Poverty: More Than Just Income
The World Bank further highlighted that poverty in Nigeria is not limited to low income. The report utilized multidimensional indicators to show that a large portion of the population suffers from multiple forms of deprivation simultaneously.
As of the latest data:
- 30.9 percent of Nigerians live on less than $2.15 per day,
- 32.6 percent lack access to limited-standard drinking water,
- 45.1 percent do not have access to basic sanitation,
- 39.4 percent are without electricity.
Education access also remains a significant challenge. About 17.6 percent of adults have not completed primary school, and 9 percent of households reported at least one school-aged child not enrolled in school.
Poverty Reduction Efforts Have Stalled
The report noted that even before the COVID-19 pandemic, efforts to combat extreme poverty in Nigeria had largely stagnated. Since 2010, the rate of poverty reduction has slowed to just half a percentage point annually.
“Living standards among the urban poor are hardly improving,” the report stated. “The kinds of jobs that allow households to escape poverty are scarce and often inaccessible.”
Inflation Threatens Recent Reforms
While the World Bank acknowledged recent economic reforms undertaken by Nigerian authorities to stabilize the macroeconomic environment, it warned that rising inflation remains a major threat to household incomes and living standards.
Inflation has eroded the purchasing power of many Nigerians, especially in urban areas where income levels have not kept pace with the rising cost of living. Food inflation and the soaring cost of basic commodities have pushed more families into economic distress.
“Persistently high inflation continues to undermine household welfare,” the Bank stated. “Targeted policy responses are needed to protect vulnerable groups and stimulate productive job creation.”
Call to Action
The World Bank urged Nigerian policymakers to take urgent action to address the crisis. The report emphasized the need for a comprehensive, inclusive strategy to reduce poverty, improve access to education and healthcare, and create meaningful employment opportunities, especially in rural communities.
“Without targeted and sustained efforts to close the inequality gap and stimulate economic opportunity for the most vulnerable, Nigeria risks further deepening the poverty crisis,” the report warned.
As the country grapples with these challenges, the message from the World Bank is clear: the time for action is now.
