Sluggish growth, low human capital, labour market weaknesses, and exposure to shocks are holding Nigeria’s poverty reduction back, the World Bank has said.
“Yet implementing pro-poor initiatives requires unlocking fiscal space; reforming expensive subsidies – including fuel subsidies – will be essential, alongside countervailing measures to protect the poor as reforms are effected.”The report represents the culmination of the bank’s engagement on poverty and inequality-relevant data and analytics in the country in the last two years.
According to the report which brings together the latest evidence on the profile and drivers of poverty in Nigeria, as many as four in 10 Nigerians live below the national poverty line. Climate and conflict shocks, it stated, are multiplying and their effects have been compounded by the COVID-19 pandemic while the government’s support for households has been inadequate.
On the way forward, the report suggested at least three types of deep, long-term reforms to foster and sustain pro-poor growth and raise Nigerians out of poverty.