Experts, CSOs, Raise Concerns On World Bank Frightening Report On Poverty In Nigeria

The World Bank and the International Monetary Fund (IMF), have painted a gloomy picture of Nigeria’s economic outlook in the short to medium term, stressing that the country’s poverty rate would increase by 2027.

The two bodies at the just-concluded 2025 Spring meetings in Washington, D.C. United States of America, highlighted the downgrading of the Nigeria’s economic growth forecast which indicated the economic policy reforms of the country are largely ineffective in addressing inclusive growth.

The development has generated deep concerns amongst some organisations and economic experts that attended the World Bank/ IMF meetings who expressed regrets, and stressed Nigeria is at risk of becoming the global capital of extreme poverty, despite being Africa’s largest economy.

They therefore called for urgent attention in addressing the economy to save it from the looming danger predicted by the global financial institutions.

Commenting on the World Bank’s verdict on Nigeria’s economy, the President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Mr Dele Oye, advanced the need for some short-term interventions that could help shield Nigeria’s vulnerable population and make meaningful progress in the fight against poverty.

However, ActionAid Nigeria (AAN), while expressing concerns about the World Bank’s verdict, said it was not surprised by the grim projections which forecasts a 3.6 percent point increase of the World Bank.

Andrew Mamedu, Country Director of AAN, stressed that Governance remains Nigeria’s greatest obstacle, adding that the World Bank has clearly highlighted the country’s poor performance on governance indicators such as government effectiveness, accountability, and political stability, which remain among the weakest in Africa.

Mamedu noted that public institutions have continued to fail in managing resources and delivering basic services which is also widening the trust deficit between the citizens and government.

In the words of Mamedu; “Institutions like the National Assembly, Judiciary, and others, who are supposed to hold the government accountable and ensure resources are available for the people, are rather making routine approvals and focus on issues that do not support the populace.

“While poverty deepens, the federal, state governments and lawmakers prioritised luxury over lives, budgeting billions for new SUVs and renovation of offices.

“President Tinubu’s administration has continued to sidestep meaningful structural reforms, pushing social protection rhetoric that barely scratches the surface, while ignoring the real cries of the people.

“The current trajectory will only fuel further migration, brain drain, instability, and disillusionment. While the government may claim economic progress, the reality is that the rich are getting richer, benefiting from policies like those in the banking sector where profits have soared to N3.41 trillion, while the poor are getting poorer. This is not inclusive growth. Reforms must ensure that the most vulnerable benefit,” he stressed.

In his own comments on the World Bank’s poverty rating for Nigeria, Auwal Musa Rafsanjani, the Executive Director of the Civil Society Legislative and Advocacy Centre (CISLAC), said that the report of the World Bank was not surprising as all the indicators were clearly there, adding that the Nigerian government has refused to take to advice to carry out reforms, particularly economic reforms to address poverty, inequality, and ensure financing for development, as well as block, reduce or minimize corruption and embezzlement.

Rafsanjani said; “There is no way you can have this kind of tendency of reckless spending, looting, excessive borrowing for just personal consumption or diversion, and lack of productivity in the economy without adverse consequence. “Even our trade and investment is not yielding the result it is supposed to yield, and definitely this projection by the World Bank will not be a surprising thing.

“In most of our States, the governors and the leadership are not harnessing the resources in their States. Rather they embark on gigantic unproductive projects just for the sake of taking money away, not for addressing gaps in education, in healthcare system, and even in the infrastructure.

“If this kind of mindset is continued, there is no way you can deal with the issues of poverty and inequality because if the whole idea of governance is to grab the resources, to steal the money, to institutionalize impunity and recklessness in governance, definitely you will continue to witness more Nigerians experiencing poverty,” he said.

Accordingly, ActionAid Nigeria tasked the Federal Government to stop playing politics with people’s lives, but should fully strengthen and expand social protection, including universal cash transfers and food support for the most vulnerable.