World Bank Says More Nigerians Will Sink Into Poverty By 2027

The World Bank has warned that poverty in Nigeria is likely to worsen by 2027, even though the country is rich in natural resources.

This warning was part of the World Bank’s latest “Africa Pulse” report, released during the ongoing Spring Meetings of the World Bank and the International Monetary Fund (IMF) in Washington, D.C.

This new projection comes less than a year after Nigeria’s Minister of Finance, Wale Edun, confidently stated that the country was making progress in lifting people out of poverty.

But according to the World Bank, more than half of Nigerians were already living in poverty as of 2024, and the situation is expected to get worse.

The report paints a troubling picture for sub-Saharan Africa as a whole, calling it the region with the world’s highest rate of extreme poverty.

Out of the estimated 695 million people living in extreme poverty worldwide, 80 percent are in sub-Saharan Africa.

That’s compared to just 8 percent in South Asia, 5 percent in the Middle East and North Africa, 3 percent in Latin America and the Caribbean, and 2 percent in East Asia and the Pacific.

Within sub-Saharan Africa, the World Bank said half of the 560 million extremely poor people live in just four countries.

Nigeria and the Democratic Republic of Congo—two resource-rich but unstable nations—are among them.

The report says poverty in these two countries is projected to rise by 3.6 percentage points between 2022 and 2027.

It also notes a pattern: countries with abundant natural resources but unstable political or economic conditions tend to have the worst poverty levels.

In 2024, poverty rates in these fragile, resource-rich countries averaged around 46 percent—far higher than in other developing nations.

Meanwhile, countries that are not resource-dependent and relatively stable have made more progress in reducing poverty.

These nations, especially those with strong agricultural sectors, have seen significant gains since 2000.

On the other hand, countries that rely heavily on oil and other resources are struggling. Falling oil prices are making it harder for these economies to grow and reduce poverty.

The report also highlighted how urban growth could help reduce poverty—if managed properly.

Although most poverty in Africa is still concentrated in rural areas, urbanization between 2010 and 2019 played a key role in reducing poverty across the continent.

Currently, only about 41 percent of Africa’s population lives in urban areas, but by 2035, the urban population is expected to grow by over 238 million people—surpassing the rural population for the first time.

This shift, the World Bank said, offers a chance for many poor people in rural areas to improve their lives.

However, the success of this transition will depend on whether cities can provide enough infrastructure, services, and jobs to support the growing population.

KanyiDaily recalls that World Bank recently approved three new loans for Nigeria, totaling $1.57 billion, aimed at boosting healthcare, education, and resilience to climate challenges.