The World Bank has called on the federal government to implement targeted reforms to protect Nigeria’s poorest citizens from surging inflation and to promote more productive work opportunities to reduce poverty.

In its April 2025 Poverty and Equity Brief for Nigeria, the Bank warned that inflation, driven by economic reforms such as fuel subsidy removal and naira flotation, is eroding purchasing power and pushing more Nigerians into poverty—especially in urban areas. It noted that since 2018/19, an additional 42 million Nigerians have fallen into poverty, with over half the population now classified as poor.

Although recent macroeconomic adjustments have helped stabilise the economy, inflation remains persistently high. Nigeria’s annual inflation stood at 24.23% in March 2025, while core inflation rose to 24.43%, driven largely by elevated food and energy costs.

To cushion the poor from recent economic shocks, the government launched cash transfers targeting 15 million households, but the World Bank criticised the programme’s slow rollout. It urged the government to use fiscal savings from subsidy reforms to strengthen the social protection system and support human capital development.

Such investments, the bank said, are essential to prevent inter-generational poverty and prepare Nigerians for future economic shocks.