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Resource-Rich Country Like Nigeria To Record Highest Increase In Poverty By 2027- World Bank
The World Bank has issued a warning regarding Nigeria’s anticipated increase in poverty levels by 2027, attributing this trend to the country’s ongoing economic instability and heavy reliance on natural resources.
According to the latest Africa Pulse report, released during the IMF/World Bank Spring Meetings in Washington, DC, Nigeria is projected to see a 3.6 percentage point rise in poverty over the next five years.
The report paints a concerning picture, suggesting that while Nigeria may experience unexpected economic growth in late 2024, mainly driven by advancements in non-oil sectors, deeper underlying issues stemming from its resource-dependent economy and ongoing political unrest could result in more Nigerians falling into poverty.
“Resource-rich and fragile countries like Nigeria and the Democratic Republic of Congo are expected to record the highest increase in poverty, with the average rate in such countries reaching 46 percent by 2024,” the report said.
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It was noted that countries rich in resources but facing instability, such as Nigeria and the Democratic Republic of Congo, are likely to experience the most significant increases in poverty. The average poverty rate in these nations is expected to reach 46 percent by 2024.
In comparison, the report highlights that countries lacking abundant resources have made more considerable strides in reducing poverty, aided by rising agricultural commodity prices and improved governance structures.
Nigeria, on the other hand, grapples with declining oil revenues and ineffective fiscal management. As of 2024, Sub-Saharan Africa is home to 80 percent of the world’s impoverished population, with Nigeria alone contributing to half of that figure and three other nations.
The report underscores the urgent need for comprehensive reforms in Nigeria’s fiscal policies and encourages greater engagement from citizens to cultivate a more inclusive and resilient economy.
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