The World Bank has praised President Tinubu’s reforms, stating that they will help prevent Nigeria from facing a potential economic collapse. These reforms aim to stabilize the nation’s economy amidst growing financial challenges.
The World Bank stated that President Bola Tinubu’s reforms are intended to prevent Nigeria from severe economic decline amid increasing inflation.
Dr. Ndiame Diop, the bank’s Country Director for Nigeria, stated on Channels Television’s Morning Brief on Friday that the reforms implemented by the current administration are corrective in nature.
This follows the release of a report by the bank titled ‘The Nigeria Development Update,’ which indicates that over 129 million Nigerians are currently living in poverty.
The report, released on Thursday in Abuja, highlights the surge in headline inflation that is driving millions of Nigerians into hunger.
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According to the global financial organization, more than 129 million Nigerians reflect a significant increase in representation from 40.1 percent in 2018 to an expected 56 percent by 2024.
The World Bank report stated, “Due to growth that is insufficient to surpass inflation rates, there has been a significant increase in poverty. Since 2018, it is estimated that the percentage of Nigerians living below the national poverty line16 has drastically increased from 40.1% to 56.0%.”
When coupled with population growth, this indicates that approximately 129 million Nigerians are living in poverty. This significant rise is partly due to Nigeria’s challenged economic performance. Real GDP per capita has yet to bounce back to the level it reached before the oil price-triggered recession of 2016.
The economic downturn was further exacerbated by the COVID-19 pandemic. Additionally, inflation is outpacing growth: significant price hikes across nearly all goods have reduced purchasing power.
