The International Monetary Fund (IMF) has warned that more than 60 percent
of Nigerians now live in poverty, despite the implementation of economic
reforms by the administration of President Bola Ahmed Tinubu.
The Fund said that although the reforms implemented by the Nigerian
government had strengthened the country’s economy, it has not in any way
alleviated poverty.
Since taking office about three years ago, President Tinubu has removed a
costly fuel subsidy, liberalised the exchange rate for its currency and overhauled
the country’s tax system.
The Fund said while the policy changes were long overdue, poverty has
continued to increase, affecting 63 percent of the population at the end of 2025.
According to the IMF, more than 27 million people faced food insecurity during
the year. “Strong reforms over the past three years have yielded improved
macroeconomic outcomes and built resilience… still, conditions for many
Nigerians remain difficult,” it said.
Poverty has been ticking up in Africa’s most populous country for years, with
the World Bank reporting last that about 61 percent of the country’s population
lived in poverty, up from 40 percent in 2019.
Widespread insecurity from armed groups — especially in the north, where a
large bulk of the country’s food is grown — is “another risk to people and
economic activity”, the IMF said.
According to the latest official figures, inflation accelerated to an annual rate of
15.7 percent in April, a five-month high.
The IMF warned that while higher costs of food, fertiliser and fuel could boost
Nigeria’s revenues — the country is Africa’s largest oil producer — they could
also intensify inflationary pressures on poor households, “potentially
aggravating poverty and food insecurity”.
