World Bank Report Puts Nigeria Poverty Rate at 60% as Atiku Criticises Tinubu
Quick Reads
- A new World Bank report indicates Nigeria’s poverty rate has hit 60 percent, drawing sharp criticism from former Vice President Atiku Abubakar against President Bola Tinubu’s economic policies.
- The poverty figure represents a significant increase from previous estimates, reflecting the compounded impact of fuel subsidy removal and currency devaluation on household purchasing power.
- Atiku’s response signals growing political pressure on the Tinubu administration as living costs outpace wage adjustments across formal and informal sectors.
Nigeria’s poverty rate has climbed to 60 percent, according to a new World Bank report, a figure that former Vice President Atiku Abubakar has seized upon to criticise President Bola Tinubu’s economic reform agenda. The data point, which represents a sharp deterioration from previous official estimates, reflects the compounded pressure on Nigerian households from the twin shocks of fuel subsidy removal and naira devaluation over the past year. Atiku, who was the runner-up in the 2023 presidential election, called the development “deeply troubling” and accused the current administration of implementing policies without adequate safety nets.
The World Bank’s assessment arrives as Nigerian consumers grapple with inflation that has eroded real incomes across most brackets. The removal of the long-standing fuel subsidy in mid-2023, followed by central bank reforms that allowed the naira to depreciate significantly against major currencies, has driven up transport, food, and manufacturing costs. For households living on fixed incomes or daily wages, the cumulative effect has pushed millions below the poverty line.
Atiku’s response amplifies a growing political debate about the pace and sequencing of economic reform. In his statement reacting to the World Bank figures, the former vice president argued that the administration should have prioritised targeted cash transfers and local production support before removing the subsidy. His criticism echoes concerns raised by some international development economists, who have cautioned that without robust social protection programmes, rapid liberalisation measures can deepen poverty before anticipated efficiency gains materialise.
The Tinubu administration has defended its reforms as necessary to correct decades of fiscal distortion. Officials have pointed to projected savings from subsidy removal estimated at over N3 trillion annually and increased revenue from exchange rate unification as funds that can be redirected to infrastructure, education, and healthcare. However, the World Bank’s 60 percent figure suggests that for many Nigerians, those benefits have yet to arrive at the household level.
Market Snapshot
- Nigeria Poverty Rate (New World Bank Estimate): 60%
- Previous Benchmark (for comparison): Approximately 40% (multiple sources, pre-2023)
- Key Policy Changes: Fuel subsidy removal (mid-2023), naira devaluation and unification (2023-2024)
- Annual Subsidy Savings (Government Estimate): Over N3 trillion
