The World Bank has disclosed that the poverty rate among Nigeria’s rural population has reached an alarming 75.5 per cent, highlighting deepening inequality and widespread economic hardship across the country.

According to the World Bank’s latest April 2025 Poverty and Equity Brief for Nigeria, rural dwellers are overwhelmingly bearing the brunt of economic stagnation, inflation, and structural challenges that have characterised the country’s growth trajectory in recent years.

The data, derived from Nigeria’s most recent nationally representative surveys, show that while 41.3 per cent of the urban population lives below the poverty line, the figure for rural Nigeria is almost double.

The report noted that overall, 30.9 per cent of Nigerians lived below the international extreme poverty line of $2.15 per day in 2018/19, before the outbreak of COVID-19.

However, multiple economic shocks, mounting insecurity, and inflation have worsened poverty levels since then. World Bank projections now estimate that by 2024, over 54 per cent of Nigerians will be living in poverty.

The Bank stressed that poverty remains highly spatially unequal in Nigeria. In the 2018/19 period, the poverty rate in the northern geopolitical zones stood at 46.5 per cent, compared to 13.5 per cent for the southern regions.

The report read, “Based on the most recent official household survey data from Nigeria’s National Bureau of Statistics, 30.9 per cent of Nigerians lived below the international extreme poverty line of $2.15 per person per day (2017 PPP) in 2018/19 before the COVID-19 pandemic.

“Nigeria remains spatially unequal. The poverty rate in northern geopolitical zones was 46.5 per cent in 2018/19, compared with 13.5 per cent for southern ones. Inequality measured by the Gini index was estimated at 35.1 in 2018/19.

“Nigeria’s Prosperity Gap — the average factor by which individuals’ incomes must be multiplied to attain a prosperity standard of $25 per day for all — is estimated at 10.2, higher than most peers.”

These figures highlight the stark economic divide across different parts of the country, which has persisted despite various interventions aimed at inclusive growth.

In addition to rural poverty, the Bank’s brief revealed troubling trends across demographic groups.

Children aged between 0 to 14 years had a poverty rate of 72.5 per cent, while 63.9 per cent of females and 63.1 per cent of males were classified as poor at the lower-middle-income poverty line of $3.65 per day.

Education status also played a significant role in poverty outcomes. Adults without any formal education recorded a poverty rate of 79.5 per cent, while those with primary education experienced a 61.9 per cent poverty rate.

Even among those with secondary education, 50.0 per cent still fell below the poverty line, whereas individuals with tertiary education fared comparatively better, with a poverty rate of 25.4 per cent.

The World Bank further noted that multidimensional poverty indicators paint a similarly bleak picture.

About 30.9 per cent of Nigerians survive on less than $2.15 a day, 32.6 per cent do not have access to limited-standard drinking water, 45.1 per cent lack limited-standard sanitation, and 39.4 per cent have no access to electricity.

Additionally, 17.6 per cent of adults have not completed primary education, and 9.0 per cent of households have at least one school-aged child who is not enrolled in school.

Before the COVID-19 pandemic, the report said progress in reducing extreme poverty in Nigeria had nearly stagnated, with the poverty rate declining by only half a percentage point annually since 2010.

Urban living standards among the poor showed little improvement, and the availability of productive jobs remained severely limited.

The report read, “Before COVID-19, extreme poverty reduction had almost stagnated, dropping by only half a percentage point annually since 2010. Living standards of the urban poor are hardly improving, and jobs that would allow households to escape poverty are lacking.

“The limited availability of jobs is symptomatic of an economy beset by structural transformation constraints and the continued dependence on oil. In rural areas, livelihoods heavily rely on agricultural activities, often for subsistence with limited productivity gains and are ill-adapted to mitigate mounting climatic challenges.”

The World Bank attributed this slow progress to Nigeria’s structural economic challenges, particularly its continued dependence on oil, lack of diversification, and vulnerabilities to climatic shocks impacting rural agriculture, which remains a primary source of rural livelihoods.

Since 2018/19, the country has witnessed additional setbacks, with 42 million Nigerians estimated to have fallen into poverty. Inflation, exacerbated by subsidy removals and currency reforms, continues to erode purchasing power, while labour incomes have failed to keep pace with rising costs, pushing more Nigerians into economic hardship, especially in urban centres.

The report read, “Multiple shocks in a context of high economic insecurity have deepened and broadened poverty. Since 2018/19, an additional 42 million people fell into poverty, so that more than half of all Nigerians (54 per cent) are estimated to live in poverty in 2024, based on World Bank projections.

“Although recent macroeconomic reforms have begun to stabilize the economy, inflation remains high, dampening consumer demand and continuing to undermine the purchasing power of Nigerians. Labor incomes have not kept up with inflation, pushing many Nigerians, particularly in urban areas, into poverty.”

In response, the World Bank recommended urgent reforms aimed at protecting the poorest from inflationary shocks and boosting livelihoods through more productive employment.

It acknowledged recent government efforts, such as the rollout of temporary cash transfers targeting 15 million households, but warned that progress had been slow.

The report emphasised that,t beyond temporary measures, Nigeria must strengthen its social protection systems, invest heavily in education, health, and infrastructure, and aggressively pursue economic diversification to create jobs outside the oil sector.