The warning came on Wednesday in Abuja during the launch of the October 2025 Nigeria Development Update (NDU), titled “From Policy to People: Bringing the Reform Gains Home

By Titilope Adako

The World Bank has expressed serious concern that, despite Nigeria’s recent economic reforms, an estimated 139 million citizens continue to live in poverty.

The warning came on Wednesday in Abuja during the launch of the October 2025 Nigeria Development Update (NDU), titled “From Policy to People: Bringing the Reform Gains Home.”

The report was presented by the World Bank Country Director for Nigeria, Mathew Verghis, who assumed office three months ago. Verghis commended Nigeria’s bold economic reforms, particularly in the foreign exchange market and the removal of the petrol subsidy, describing them as “foundational” steps capable of transforming the country’s long-term economic trajectory.

However, he cautioned that these macroeconomic achievements would be meaningless unless they translated into tangible improvements in the lives of ordinary Nigerians.

“Despite the stabilisation gains, many households are still struggling with eroded purchasing power. In 2025, we estimate that 139 million Nigerians live in poverty,” Verghis said.

The report highlighted that while the reforms have begun yielding positive results—such as rising growth, improved revenues, better debt indicators, stabilising exchange rates, and easing inflation—these improvements remain largely at the macro level, with millions of Nigerians yet to feel the impact in their daily lives.

Verghis identified three critical priorities for turning policy success into real human development outcomes: reducing inflation, improving the effective use of public resources, and expanding social protection coverage for the poor and vulnerable.

He stressed that food inflation must be urgently addressed, warning that persistently high food prices could erode public support for the government’s reform agenda and weaken economic recovery.

“Food inflation affects everybody, particularly the poor. Persistent differences between Nigeria’s inflation rate and those of its trading partners will pressure the exchange rate and create a vicious cycle,” he said.

While praising the Central Bank of Nigeria’s tight monetary policy and the government’s fiscal discipline, Verghis said these measures must be complemented by structural reforms targeting inefficiencies in food production, market systems, and distribution.

The World Bank also urged the Federal Government to strengthen public financial management systems to ensure transparency and measurable impact of spending, while expanding national social safety nets to cushion vulnerable Nigerians from the effects of ongoing economic adjustments.

“The challenge is clear: to translate the gains from stabilisation reforms into better livelihoods for the Nigerian people,” Verghis concluded.

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