World Bank—Global lender warns that Nigeria’s economic reforms risk losing momentum unless they translate into real gains for millions facing hardship.
The World Bank has warned that about 139 million Nigerians are now living in poverty, despite early signs of progress from the government’s economic reforms. The bank cautioned that unless these reforms lead to visible improvements in people’s lives, the gains could quickly erode.
The warning came on Wednesday during the launch of the World Bank’s October 2025 Nigeria Development Update (NDU), titled “From Policy to People: Bringing the Reform Gains Home.” The event, held in Abuja, reviewed the impact of Nigeria’s recent fiscal and monetary policy adjustments.
World Bank Country Director for Nigeria, Mathew Verghis, praised the government’s decisions to unify the exchange rate and remove petrol subsidies, calling them “foundational reforms” that could transform the economy.
“Over the last two years, Nigeria has commendably implemented bold reforms,” Verghis said. “These are the foundations on which the country can build a program that reshapes its economic trajectory.”
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He compared the current policy window to the landmark economic liberalizations in India during the early 1990s, warning that such rare moments must be used decisively “or risk being lost.”
According to Verghis, the reforms are beginning to yield macroeconomic results. Growth has started to pick up, government revenues have improved, debt indicators are stabilizing, and inflation has shown early signs of easing. “These are big achievements, and many countries would envy them,” he said.
However, he noted that these gains have yet to reflect in living standards. “Despite stabilization, many households are struggling with eroded purchasing power,” he said. “We estimate that 139 million Nigerians live in poverty in 2025, up from 129 million in April and 87 million in 2023.”
The report urged the Nigerian government to prioritize three critical areas: reducing inflation, using public funds more effectively, and expanding social protection for the poor. Verghis stressed that food inflation must be tackled urgently, warning that persistently high prices could weaken political support for reforms.
“Food inflation affects everyone, especially the poor,” he said. “Lower inflation will allow interest rates to come down and support growth.”
The World Bank also called for reforms in food production and distribution, and stronger public financial management to ensure every naira spent delivers measurable impact.
“The challenge is clear,” Verghis concluded. “Nigeria must translate stabilization gains into better living standards for all.”
