Nigeria Disputes World Bank’s Poverty Estimate, Cites “Unrealistic” Figures
The Nigerian Presidency has challenged the latest economic report by the World Bank, which estimated that 139 million citizens are living in poverty. The government described the figure as “unrealistic” and said it does not reflect the actual economic conditions in the country.
In a statement released through the Special Adviser on Media and Public Communication, Sunday Dare, the administration emphasized that the poverty numbers must be properly contextualized within global poverty measurement models. While acknowledging the World Bank’s contributions to policy analysis, the statement argued that the $2.15 per person per day global poverty line—set in 2017 using Purchasing Power Parity (PPP)—should not be interpreted as an exact count of poor Nigerians.
According to the Presidency, when converted to nominal terms, the $2.15 benchmark equals about N100,000 per month at current exchange rates, which is significantly higher than Nigeria’s new minimum wage of N70,000. This discrepancy highlights the limitations of using a global standard to assess local economic realities.
The statement further noted that poverty assessments under PPP methodology rely on historical consumption data, often overlooking the informal and subsistence economies that sustain millions of households. It stressed that the World Bank’s estimate should be seen as a modelled global projection rather than an empirical representation of living conditions in 2025.
Government Initiatives to Address Poverty
The administration highlighted several welfare and intervention programmes aimed at cushioning the impact of recent reforms while laying the groundwork for long-term prosperity. Key initiatives include:
- Conditional Cash Transfers: Expanded to reach up to 15 million households nationwide, with verified digital enrolment through the National Social Register. Over N297 billion has been disbursed since 2023 to poor and vulnerable families.
- Renewed Hope Ward Development Programme: A major new initiative targeting all 8,809 electoral wards, delivering micro-infrastructure, livelihoods, and social services directly at the community level.
- National Social Investment Programmes: Strengthened components such as N-Power, GEEP micro-loans (TraderMoni, MarketMoni, FarmerMoni), and Home-Grown School Feeding to protect jobs, encourage small enterprise, and keep children in school.
- Food Security Initiatives: Distribution of subsidised grains and fertilisers, mechanisation partnerships, and the revival of strategic food reserves to curb inflationary pressure on staples.
- Renewed Hope Infrastructure Fund: Financing critical energy, road, and housing projects to lower living costs and stimulate local employment.
- National Credit Guarantee Company: Expanding affordable credit to small businesses, women, and youth entrepreneurs through risk-sharing mechanisms with commercial banks.
The government also emphasized ongoing reforms such as fuel subsidy removal, exchange rate unification, and fiscal reallocation toward productive sectors. These measures were described as “painful but necessary choices” to address the root causes of poverty rather than its symptoms.
Mixed Reactions to the Report
While the government disputes the World Bank’s figures, various stakeholders have expressed concerns about the effectiveness of the administration’s policies. Opposition parties, economists, and labour leaders criticized the lack of tangible relief for ordinary Nigerians despite economic stabilisation efforts.
Labour leaders pointed out that the naira’s continued depreciation has pushed many into extreme poverty, with some earning as little as a dollar or two per day. Economists warned that while macroeconomic stability is improving, the next step must focus on reducing the cost of living through targeted interventions in agriculture, infrastructure, and energy.
Some critics argued that growth alone cannot reduce poverty without deliberate policies. Others called for improved power supply and digital skills training to help citizens benefit from global opportunities.
World Bank’s Perspective
The World Bank Country Director for Nigeria, Mathew Verghis, acknowledged the progress made through recent reforms but warned that macroeconomic improvements have yet to translate into improved living conditions for ordinary Nigerians. He noted that poverty levels have continued to rise despite the reforms, with 139 million Nigerians now estimated to live in poverty.
Verghis likened the current reform window to historic policy shifts seen in countries like India in the early 1990s, emphasizing the need to seize these opportunities decisively to avoid losing gains.
Conclusion
The Nigerian government remains focused on empowering households, expanding opportunity, and laying the foundation for a fairer, more prosperous nation. As the administration continues to implement reforms, the challenge lies in ensuring that macroeconomic stability translates into real welfare gains for ordinary Nigerians.
