THE World Bank has raised concerns about the inability of the Bola Tinubu-led administration’s economic reforms to stabilise the economy and lift about 139 million Nigerians out of poverty.
The World Bank Country Director for Nigeria, Mathew Verghis, made this known on Wednesday during the launch of the October 2025 edition of the Nigeria Development Update, titled “From Policy to People: Bringing the Reform Gains Home.”
“Despite these stabilisation gains, many households are still struggling with eroded purchasing power. Poverty, which began to rise in 2019 due to policy missteps and external shocks such as COVID-19, has continued to increase even after the reforms. In 2025, we estimate that 139 million Nigerians live in poverty,” he stressed.
The new figure marks a sharp rise from 129 million in April 2025 and 87 million in 2023, highlighting the worsening hardship faced by households despite the ongoing economic reforms.
The ICIR reported that the Central Bank of Nigeria pitched high interest rates as the most severe constraint affecting business operations in June 2025, overtaking long-standing challenges such as insecurity and poor electricity supply.
The apex bank disclosed this in its June 2025 Business Expectations Survey, which polled 1,900 firms across the agriculture, services, and industrial sectors. According to the report, high interest rates scored 75.6 on the constraint index, followed by insecurity at 75.2 and insufficient power supply at 74.3.
Accordingly, Verghis, in his latest remark, warned that the country could lose the progress made through these reforms if they do not lead to real improvements in citizens’ living conditions.
“Over the last two years, Nigeria has commendably implemented bold reforms, notably around the exchange rate and the petrol subsidy. These are the foundations on which the country has the opportunity to build a programme that can transform its economic trajectory,” he said.
Verghis explained that the report outlined three key priorities for turning Nigeria’s policy achievements into better living standards for its citizens: curbing inflation, ensuring more efficient use of public resources, and expanding social protection for the poor and vulnerable.
He stressed that tackling food inflation should be central to Nigeria’s policy response, warning that continued high food prices could undermine public support for reforms and slow down economic recovery.
“Food inflation affects everybody, particularly the poor. Persistent differences between Nigeria’s inflation rate and those of its trading partners will put pressure on the exchange rate and create a vicious cycle. Lower inflation will also allow interest rates to come down and support growth,” he stated.
The World Bank chief, however, praised Nigeria’s bold reforms in the exchange rate and fuel subsidy sectors, describing them as “foundational” measures capable of transforming the country’s long-term economic outlook.
Comparing Nigeria’s current reform moment to the historic policy changes implemented in India in the early 1990s, he stressed that such rare opportunities must be seized with determination or risk being squandered.
The Director, who also spoke on the positives in Tinubu’s reforms, said there are indications that economic growth is improving alongside the government’s revenues, adding that “debt indicators are strengthening, the foreign exchange market is stabilising, reserves are rising, and inflation is slowly easing.”
“These results are exactly what you need to see in a stabilisation phase. These are big achievements, and many countries would envy them,” he added.
He further warned that these macroeconomic gains have not yet resulted in better living conditions for ordinary Nigerians and called for complementary structural reforms to address deep-seated inefficiencies in food production, distribution, and market systems.
“Monetary and fiscal policies must be complemented by structural reforms aimed specifically at reducing food inflation, which is driven by deep-seated supply and market inefficiencies,” he added.
The World Bank further called on Nigeria to strengthen its public financial management systems to ensure that every naira spent yields measurable development results. It also urged the government to expand the national social safety net to shield the poorest citizens from the effects of ongoing economic reforms.
“The challenge is clear: to translate the gains from the stabilisation reforms into better living standards for all. These are not abstract ideas but practical steps that can turn macro stability into better livelihoods,” he said.
The ICIR reported in August that small-scale businesses and industries are expressing displeasure about the impact of President Bola Ahmed Tinubu’s economic reforms, which are raising further concerns about the negative effects on their operations.
Nanji is an investigative journalist with the ICIR. She has years of experience in reporting and broadcasting human angle stories, gender inequalities, minority stories, and human rights issues. She has documented sexual war crimes in armed conflict, sex for grades in Nigerian Universities, harmful traditional practices and human trafficking.