World Bank Report: Almost Half of Nigerians Live Below Poverty Line Due to Inflation

The World Bank reports that nearly half of Nigeria’s population lives in poverty, driven by inflation overwhelming minimum wage levels. Approximately 107 million Nigerians are below the $2.15 per day poverty line. The Bank’s analysis contrasts Nigeria’s GDP per capita unfavorably with other countries, suggesting significant wealth inequality exists between the elite and ordinary citizens.

The World Bank’s recent Nigeria Development Update highlights a stark reality: nearly half the population is now living in poverty, and the situation is dire as inflation continues to outpace the nation’s minimum wage. Released in Abuja, the report states that around 107 million Nigerians, or 46 percent of the population, exist below the international poverty line of $2.15 daily.

The findings show that since 2018-2019, an additional 40 million individuals have succumbed to poverty, worsening the economic crisis. Urban areas, in particular, are experiencing a broadening and deepening poverty rate, with labor incomes failing to keep pace with soaring inflation. The Bank concluded, “Successive years of rising inflation and sluggish growth have increased poverty and hardship levels.”

Moreover, the World Bank painted a troubling picture of Nigeria’s comparative economic standing, stating that the nation’s GDP per capita is a mere 4.4 percent of Singapore’s and only 30 percent of Botswana’s—an African country that is seemingly better managed economically despite having fewer natural resources. The report emphasized that while macroeconomic indicators might suggest growth, this wealth does not trickle down to the average Nigerian.

“If Nigeria’s current annual economic output was equally distributed, this would be sufficient to eliminate poverty, but it would still leave Nigerians far behind the global prosperity frontier,” the Bank emphasized.

The report, accompanied by an estimate of Nigeria’s population at 232.7 million and a GDP of N277.5 trillion in 2024, argues that an equal distribution of GDP would yield only about N100,000 monthly for each Nigerian—still inadequate to cover basic living costs due to persistent inflation pressures in urban areas.

The growing divide between Nigeria’s political elite and the general public is underscored in light of legislators enjoying significant benefits while citizens struggle. Last week, a federal lawmaker disclosed the enormous amounts allocated for “constituency projects,” which have dramatically increased since President Bola Tinubu eliminated the fuel subsidy. Allegations surfaced that no Senator currently receives less than N2 billion, while members of the House of Representatives reportedly receive at least N1 billion each.

This revelation provoked a new wave of public anger regarding the entrenched culture of corruption and unaccountable spending within Nigeria’s governmental framework. Citizens are left to grapple with the stark contrast between their hardships and the unchecked privileges of those in power, further fueling discontent amidst a worsening economic climate.

The World Bank’s findings underscore a grim reality for Nigeria, with nearly 107 million citizens reportedly living below the international poverty line. The disconnect between economic growth and the lived experiences of Nigerians points to troubling governance issues. As the elite continue to flourish amidst cries for accountability and transparency, the challenges faced by the majority loom larger than ever, highlighting a critical need for effective change and improvement in economic policies.

Original Source: saharareporters.com