Nigeria’s struggle with poverty has reached a critical juncture, with a staggering 75.5% of its rural population living below the poverty line, according to the World Bank’s April 2025 Poverty and Equity Brief. This stark reality underscores a deepening inequality between rural and urban areas, with only 41.3% of urban dwellers experiencing similar hardship. While pre-pandemic data from 2018/19 indicated that 30.9% of Nigerians lived below the international poverty line of $2.15 per day, the combined impact of economic shocks, escalating insecurity, and rampant inflation has propelled the projected poverty rate to a concerning 54% by 2024. This represents a significant increase of 42 million Nigerians falling into poverty, highlighting the severity of the economic challenges facing the nation. This disproportionately affects the north, where poverty rates are significantly higher than in the south, further emphasizing the uneven distribution of economic opportunity and prosperity.
Geographic disparities are not the only dividing lines in Nigeria’s poverty landscape. Vulnerability to poverty is also heavily influenced by age, gender, and education level. Children under 15 years of age face the highest poverty rate at 72.5%, followed by both females and males at around 63%. Education emerges as a crucial factor in mitigating poverty, with individuals possessing no formal education experiencing a poverty rate of nearly 80%. While increasing levels of education correlate with lower poverty rates, even those with secondary education face a 50% chance of living below the poverty line. These findings underscore the urgent need for investments in education and skills development as a pathway out of poverty. Furthermore, the high poverty rate among children necessitates targeted interventions to break the cycle of intergenerational poverty and ensure a brighter future for the nation’s youth.
The World Bank’s multidimensional poverty index paints a similarly grim picture. Beyond income poverty, a significant portion of the population lacks access to basic necessities such as clean water, sanitation, and electricity. These deprivations further compound the challenges faced by impoverished Nigerians and highlight the systemic nature of the poverty crisis. Limited access to education, with a substantial number of adults lacking primary education and children out of school, further perpetuates the cycle of poverty. The convergence of these factors creates a complex web of disadvantage that requires a multi-faceted approach to effectively address. Addressing these interconnected deprivations is crucial for achieving sustainable development and improving the overall well-being of the Nigerian population.
Even before the COVID-19 pandemic, progress in poverty reduction was stagnant, with an annual decline of only half a percentage point since 2010. The pandemic and subsequent economic shocks, including inflation fueled by subsidy removals and currency reforms, have worsened the situation significantly. Limited job creation stemming from structural economic challenges and a reliance on oil revenue have hampered economic diversification, further hindering progress. In rural areas, livelihoods heavily depend on agriculture, which often provides subsistence-level income with limited productivity gains and vulnerability to climate change. The lack of economic diversification leaves the country exposed to external shocks and limits opportunities for inclusive growth.
Nigeria’s dependence on oil revenue has created a precarious economic landscape, leaving the country vulnerable to global market fluctuations and hindering the development of other sectors. This over-reliance on oil has also contributed to a lack of job creation, especially productive jobs that can lift individuals and families out of poverty. Furthermore, the agricultural sector, upon which a significant portion of the population relies, is characterized by low productivity and increasing susceptibility to climate change-related challenges. This combination of factors has created a cycle of poverty that is difficult to break without significant structural reforms.
The World Bank advocates for urgent and comprehensive reforms to address Nigeria’s poverty crisis. While acknowledging the government’s efforts, such as temporary cash transfers, the Bank stresses the need for more impactful and sustainable interventions. Strengthening social protection systems, investing heavily in education, health, and infrastructure, and aggressively pursuing economic diversification are crucial for long-term poverty reduction. Creating jobs outside the oil sector is essential to provide sustainable livelihoods and reduce the economy’s vulnerability to external shocks. These reforms are vital not only to alleviate immediate suffering but also to build a more resilient and inclusive economy that can deliver shared prosperity for all Nigerians.
