The World Bank’s Africa’s Pulse report highlights a deepening poverty crisis in Nigeria and other resource-rich, fragile states in Sub-Saharan Africa. Even with recent economic activity in Nigeria’s non-oil sectors, the persistent structural issues—like overreliance on natural resources, fiscal weaknesses, and national fragility—are projected to counteract progress.
Nigeria’s poverty rate is expected to rise by 3.6 percentage points from 2022 through 2027.
This places Nigeria among countries projected to experience worsening poverty, particularly those with natural resource dependence and governance challenges.
Regional Comparison
Sub-Saharan Africa hosts 80% of the global extreme poor, with Nigeria being one of the top four contributors.
South Asia (8%), East Asia & Pacific (2%), and Latin America (3%) have much lower shares of extreme poverty.
Economic Disparities
Resource-rich countries (like Nigeria and DRC) are falling behind due to:
- Volatile oil prices.
- Weak fiscal management.
- Political or economic instability.
- Non-resource-rich nations are faring better, buoyed by agricultural exports and more resilient growth paths.
Recommendations from the World Bank
- Improve fiscal management – better use of revenues and curbing inefficiencies.
- Strengthen social contracts – through transparency and more equitable service delivery.
- Diversify the economy – reduce dependence on oil and gas.
- Invest in human capital – particularly education, health, and skills development.