The World Bank on Wednesday urged Nigeria to ensure that gains from its recent economic reforms translate into tangible improvements in citizens’ living standards, warning that about 139 million people in the country remain in poverty despite early signs of macroeconomic stability.
At the launch of the latest Nigeria Development Update (NDU) in Abuja, World Bank Country Director for Nigeria, Mathew Verghis, commended the government’s “bold” reforms, particularly the removal of petrol subsidies and the unification of exchange rates, saying they had begun to stabilise the economy and strengthen the foundation for long-term growth.
“Over the last two years, Nigeria has implemented major reforms around the exchange rate and petrol subsidy,” Verghis said. “These policies have laid the foundation for transforming the country’s economic trajectory for decades to come.”
He said the impact of the reforms was becoming visible through stronger revenue collection, stabilising foreign exchange markets, rising reserves, and a gradual decline in inflation.
“Growth has picked up, revenues have risen, debt indicators are improving, the FX market is stabilising, reserves are rising, and inflation is finally beginning to come down. These are major achievements, and many countries would envy them,” Verghis said.
However, he warned that the macroeconomic improvements had yet to translate into better living conditions for most Nigerians.
“Despite these stabilisation gains, many Nigerians are still struggling. In 2025, we estimate that 139 million Nigerians live in poverty. The challenge is clear: how to translate reform gains into better living standards for all,” he added.
The new NDU report, titled “From Policy to People: Bringing the Reform Gains Home,” outlines a three-point agenda to sustain progress — reducing inflation, improving public spending efficiency, and expanding social safety nets.
Verghis noted that tackling food inflation was critical to protecting vulnerable households and maintaining public support for ongoing reforms.
“Food inflation affects everyone but hits the poor the hardest. It also threatens to undermine political support for reforms. Tight monetary policy is essential, but it must be complemented by structural measures that tackle supply and market bottlenecks,” he said.
He called for stronger management of public resources and more effective safety net programmes to cushion hardship and foster inclusive growth.
“These are not abstract ideas — they are practical steps that can turn macro-stability into improved livelihoods,” Verghis said, reaffirming the World Bank’s commitment to supporting Nigeria’s reform efforts through policy advice, technical assistance, and financial support aimed at achieving sustainable development and shared prosperity.