Nigeria Needs at least N3.7tn to Tackle Poverty

Nigeria’s poverty rate has been rising on an annual basis. 63 percent of people—133 million Nigerians out of an estimated population of 211 million—are multi-dimensionally poor. By implication, two out of every three Nigerians are lacking in more than one basic necessity. 

The National Bureau of Statistics (NBS) reported in its recent National Multidimensional Poverty Index report that 133 million Nigerians are multi-dimensionally poor.

According to a report published by the World Bank, Nigeria would need to spend N3.7 trillion to address the problem of poverty.

However, the financial institution made a point in its synthesis report for this month’s publication of the Nigeria Country Economic Memorandum: Charting a New Course.

The N3.7tn in the World Bank’s estimate is less than what the nation spends each year on gasoline subsidies, the bank claims.

It was mentioned that Nigeria has the capacity and assets to boost growth and eradicate poverty. The bank’s report said: “In a context of weakened economic growth, widespread poverty, deepening inequality, and political turbulence, realizing the government’s ambition of lifting roughly 100 million Nigerians out of poverty by 2030 is challenging.

“For instance, the poverty gap index—a measure of the minimum cost of eliminating poverty if transfers were perfectly targeted—shows that eliminating poverty in Nigeria would cost almost N3.7tn per year (World Bank, 2022c), lower than the amount the country currently spends on petrol subsidies. Removing distortions will allow Nigerians to benefit from their country’s immense wealth.”

World Bank noted in its newly released Nigeria Development Update that inflation pushed five million Nigerians into poverty between January and October this year.

The government’s goal of removing 100 million Nigerians from poverty in ten years is being challenged by the rising poverty.

The ambition of the Nigerian president to bring 100 million Nigerians out of poverty in 10 years was deemed ambitious by Tara Vishwanath, the lead economist at the World Bank’s Poverty Reduction and Economic Management Group for the Middle East and North Africa region.