Following a World Bank report warning of worsening poverty in Nigeria, the Manufacturers Association of Nigeria (MAN) and economic scholars have urged the government to implement practical measures to improve citizens’ living conditions.
The report, titled “From Policy to People: Bringing the Reform Gains Home,” noted that Nigeria’s economy grew by 3.9 per cent in the first half of 2025, up from 3.5 per cent in the same period in 2024. While the reforms undertaken by the Tinubu administration—such as fuel subsidy removal, exchange rate unification, and tighter monetary policies—stabilised the macroeconomy, they have not translated into significant welfare improvements for households, particularly the poor.
MAN Director-General Segun Ajayi-Kadir stressed that poverty reduction must be a deliberate policy, focusing on access to food, medicine, and education, especially for women and girls who are disproportionately affected. He acknowledged the short-term hardships from economic reforms but urged targeted initiatives to reduce living costs, accelerate production, and improve business conditions. Ajayi-Kadir also highlighted insecurity as a major barrier, particularly in food logistics, urging decisive action to tackle it.
Economics experts reinforced these concerns. Professor Olanrewaju Olaniyan of the University of Ibadan described the current growth as failing to improve quality of life due to issues like poor power supply, insecurity, and inflation. Similarly, Professor Hassan Oaikhenan of the University of Benin termed it “jobless growth,” emphasizing that GDP expansion has not increased real income or household welfare. Both scholars called for investments in infrastructure, education, health, and security, especially to protect agriculture, which contributes about 27 per cent of Nigeria’s GDP.
The World Bank also highlighted the urgent need to tackle food inflation, enhance agricultural productivity, and implement social protection programs such as regular cash transfers for the ultra-poor. While macroeconomic indicators have improved—including foreign reserves surpassing $42 billion, a current account surplus of 6.1% of GDP, and a projected decline in public debt—the Bank warned that these gains must reach citizens to meaningfully reduce poverty.
World Bank Country Director for Nigeria, Mathew Verghis, and Senior Economist Samer Matta emphasized that macroeconomic stability alone is insufficient. Policies must directly address high costs of living, poor productivity, and structural constraints to ensure growth benefits ordinary Nigerians.
The report projects a modest GDP growth increase to 4.4% by 2027, driven by services, agriculture, and non-oil industries, but warns that success will depend on sustained reforms, policy consistency, infrastructure investment, and improved governance to ensure citizens experience tangible welfare improvements.
