The Federal Government has faulted the World Bank’s latest poverty assessment, which claimed that about 139 million Nigerians now live in poverty, describing the report as “a global statistical model detached from local realities.”
In a statement responding to the report, the Presidency said the World Bank’s figure was not based on current domestic data but on a Purchasing Power Parity (PPP) benchmark last updated in 2017.
“There must be caution against interpreting the World Bank’s numbers as a literal, real-time headcount. The estimate is derived from the global poverty line of $2.15 per person per day — a theoretical construct that does not reflect local income realities,” the statement read.
It explained that when converted to nominal terms, the $2.15 benchmark amounts to about ₦100,000 per month at current exchange rates, far above Nigeria’s new ₦70,000 minimum wage.
The government maintained that while it acknowledges the hardship facing citizens, Nigeria’s economic trajectory is now “one of recovery and reform.”
It said several intervention programmes have been expanded to cushion the effects of subsidy removal and exchange rate unification, including:
Conditional Cash Transfers: Expanded to 15 million households with ₦297 billion disbursed since 2023.
Renewed Hope Ward Development Programme: Implemented across 8,809 wards to deliver micro-infrastructure and livelihoods.
Food Security Initiatives: Subsidised grains and fertiliser distribution, and the revival of strategic food reserves.
National Credit Guarantee Company: Expanding loans to women, youth, and small businesses.
The statement added that the Renewed Hope Infrastructure Fund is investing in energy, road, and housing projects to lower living costs and create jobs.
“The Tinubu administration is tackling structural distortions that have constrained inclusive growth for decades,” it said. “Even the World Bank itself has acknowledged that reforms are restoring macroeconomic stability and growth momentum.”
Earlier, the World Bank Country Director for Nigeria, Mathew Verghis, praised the country’s bold reforms but warned that the gains have not yet translated into better living conditions.
“Over the last two years, Nigeria has commendably implemented bold reforms, notably around exchange rates and petrol subsidy removal. However, many households are still struggling with eroded purchasing power,” Verghis said during the launch of the October 2025 Nigeria Development Update report, titled “From Policy to People: Bringing the Reform Gains Home.”
The Bank estimated that the number of Nigerians living in poverty rose from 87 million in 2023 to 139 million in 2025, a reflection of worsening hardship despite macroeconomic stability.
Critics and Labour Challenge FG’s Position
Opposition parties and labour groups faulted the Presidency’s defence, arguing that citizens’ daily experiences contradict government claims of improvement.
Labour Party’s Interim National Publicity Secretary, Tony Akeni, said:
“While the President talks about growth and reduced inflation, these are figures on paper. They haven’t translated into any relief for ordinary Nigerians.”
The Nigeria Labour Congress (NLC) Assistant General Secretary, Chris Onyeka, added:
“We don’t need the World Bank or IMF to tell us the truth. Millions of Nigerians are struggling to feed and pay rent. The ₦70,000 minimum wage barely covers the cost of a bag of rice.”
Economists say Nigeria’s short-term hardship is a result of the adjustment period following major reforms.
Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, said:
“The process of fixing what’s broken has aggravated poverty. The next policy phase must focus directly on welfare and cost-of-living reduction.”
Proshare Nigeria’s Chief Economist, Teslim Shitta-Bey, noted that while growth was picking up, the challenge was ensuring that reform gains reach the poor.
“Exchange rate unification and subsidy removal were inevitable, but the benefits must reflect in jobs, power reliability, and digital inclusion.”
As the debate continues, SERAP has called on the government to release up-to-date poverty data and ensure transparency in social spending.
While the World Bank warns of deepening hardship, the Presidency insists Nigeria is on a recovery path, pledging that citizens will “soon feel visible improvements in income, food prices, and purchasing power” as reform programmes mature.
“Nigeria rejects exaggerated statistical interpretations detached from local realities. The government remains focused on empowering households, expanding opportunity, and laying the foundation for a fairer, more prosperous nation,” the statement concluded.
