The World Bank has cautioned that Nigeria’s recent economic reforms, though stabilizing key indicators, have yet to translate into tangible relief for millions of citizens — with an estimated 139 million Nigerians still living in poverty.
At the launch of the latest Nigeria Development Update (NDU) report on Wednesday in Abuja, the Bank’s Country Director for Nigeria, Mathew Verghis, praised the Federal Government’s “bold and necessary” policy measures, particularly the removal of petrol subsidies and exchange rate unification.
Verghis said the reforms had begun to yield results, citing improved government revenues, a more stable foreign exchange market, rising reserves, and a gradual slowdown in inflation.
“Growth has picked up, revenues have risen, debt indicators are improving, the FX market is stabilizing, reserves are rising, and inflation is finally beginning to come down. These are major achievements, and many countries would envy them,” he said.
However, Verghis noted that the economic gains have not yet reached ordinary Nigerians.
“Despite these stabilization gains, many Nigerians are still struggling. We estimate that 139 million people live in poverty. The challenge now is how to turn reform gains into better living standards for all,” he said.
The new NDU report, titled “From Policy to People: Bringing the Reform Gains Home,” outlines a three-point roadmap for sustaining progress — curbing inflation, improving public spending efficiency, and expanding social protection programmes.
Verghis identified food inflation as the most pressing concern, warning that it could erode support for reforms if left unaddressed.
“Food inflation affects everyone but hits the poor the hardest. It also threatens to undermine political support for reforms. While tight monetary policy is crucial, it must be complemented by structural actions that tackle supply and market bottlenecks,” he explained.
He urged better fiscal management and stronger social safety nets to cushion vulnerable households and promote inclusive growth.
“These are not abstract ideas — they are practical steps that can turn macro-stability into improved livelihoods,” he said.
