World Bank – More Nigerians will fall into poverty by 2027

The World Bank has forecasted a grim economic crisis for Nigeria, projecting a rise in poverty at an alarming rate of 3.6 percent by 2027. The econometric forecasting was contained in the World Bank’s Africa’s Pulse report during the ongoing joint summit between International Monetary Fund (IMF) and the World Bank in Washington, DC. USA.

“The World Bank projects that Nigeria’s poverty rate will increase by 2027. This is because the country, despite its oil wealth, is experiencing high poverty rates due to conflict and fragility, according to the report. The World Bank estimates that poverty rates in resource-rich, fragile countries average 46% in 2024, which is 13 percentage points higher than in non-fragile, resource-rich countries.”

 “Despite having the largest economy and population in Africa, Nigeria offers limited opportunities to most of its citizens. Nigerians born in 2020 are expected to be future workers 36% as productive as they could be if they had full access to education and health, the 7^th lowest human capital index in the world. Weak job creation and entrepreneurial prospects stifle the absorption of the 3.5 million Nigerians entering the labor force every year, and many workers choose to emigrate in search of better opportunities.”

 The World Bank projects that Nigeria’s poverty rate will increase by 2027. This is because the country, despite its oil wealth, is experiencing high poverty rates due to conflict and fragility, according to the report. The World Bank estimates that poverty rates in resource-rich, fragile countries average 46% in 2024, which is 13 percentage points higher than in non-fragile, resource-rich countries. 

Here’s a more detailed explanation:

• Resource Wealth and Fragility:

Nigeria, a country with significant oil wealth, faces a high poverty rate due to its inherent fragility and conflicts. 

• Higher Poverty Rates:

The World Bank’s data shows that resource-rich, fragile countries have an average poverty rate of 46% in 2024, which is 13 percentage points higher than non-fragile, resource-rich countries. 

• Projected Increase:

The World Bank expects Nigeria’s poverty rate to increase further by 2027. 

• Impact of Conflict:

Conflict, violence, and displacement in Nigeria have significantly impacted livelihoods and increased poverty rates. 

• Factors Contributing to Poverty:

Factors such as conflict, insecurity, and unemployment are exacerbating poverty levels in Nigeria. 

(credit AI Google)