By Adefolarin A. Olamilekan | IDNN Economic Viewpoint Columnist
In a damning update from the World Bank’s latest Africa Pulse Report, Nigeria has again emerged as one of the epicentres of rising poverty in Sub-Saharan Africa. The bank warns that extreme poverty is not only growing — it is becoming structurally embedded in resource-rich but fragile nations like Nigeria.
The numbers are alarming: 13 million more Nigerians are projected to fall below the poverty line in 2025, raising the total number of poor people to over 119.4 million. This increase is not accidental. It is the direct result of high inflation, rising interest rates, weakened currency value, and low productivity.
But more importantly, it is the consequence of deep-seated political decisions — or indecisions — that continue to shape the lives of millions.
🧠 Beyond GDP: The Political Roots of Economic Suffering
We must now ask hard questions: Why has Nigeria’s vast wealth failed to lift its people out of poverty? Why does growth consistently fail to translate into broad-based wellbeing?
The answer lies in the political economy of poverty — the intersection where policy, power, and profit determine who prospers and who is left behind.
Nigeria’s poverty is not merely a function of market failures or economic shocks. It is shaped by:
-
Weak institutions unable to deliver equitable public services
-
Chronic corruption that diverts resources from health, education, and infrastructure
-
Ethnic patronage and elite capture of public policy
-
Oil dependence that undermines productive sectors like agriculture and manufacturing
-
Governance fragility that leaves reforms half-implemented or easily reversed
📉 World Bank’s Stark Warning: Poverty Rising Across Africa
According to the Africa Pulse Report, 80% of the world’s 695 million extremely poor people now live in Africa. Four countries — Nigeria, DRC, Ethiopia, and Tanzania — account for nearly half of Sub-Saharan Africa’s 560 million poor.
The report warns that without structural change, poverty in these countries will surge by another 3.6 percentage points by 2027.
In Nigeria’s case, inflation — driven by food scarcity, energy costs, FX volatility, and insecurity — is eroding household income. The informal sector, which employs more than 65% of Nigerians, remains largely unsupported by credit or formal safety nets.
🧨 The Poverty-Politics Feedback Loop
The real crisis is not just poverty — it is the cycle that links poverty to political inertia, and back again. A poorly educated, economically desperate population is easier to manipulate, less able to hold power to account, and more likely to exchange votes for survival.
Poverty is not just an outcome in Nigeria. It is a political instrument — sometimes by design.
🛠️ What Must Be Done?
Solving poverty in Nigeria demands more than handouts or conditional cash transfers. It requires:
-
Anti-corruption enforcement with teeth
-
Inclusive growth strategies that empower small businesses, farmers, and local manufacturers
-
Public investment in education and healthcare — not just budget allocation, but execution
-
Political reforms that de-emphasize patronage and strengthen electoral accountability
-
Economic diversification to shift from extractive rents to productive wealth
In short, poverty must be confronted as a governance problem. If political structures remain untouched, economic fixes will only offer temporary relief — not systemic transformation.
About the Author:
Adefolarin A. Olamilekan is a political economist and host of The Market Report Show on ADBN Television. He writes the weekly Economic Viewpoint column for IDNN, offering sharp insights into Nigeria’s fiscal trajectory, development policy, and public finance.