Despite Nigeria’s abundance of resources, an increasing number of its citizens are projected to fall into poverty by 2027, according to the World Bank Group.
This information is detailed in the World Bank’s Africa Pulse report, which was released during the ongoing Spring Meetings of the International Monetary Fund (IMF) and the World Bank in Washington DC, USA.
The report highlighted that sub-Saharan Africa has the highest rate of extreme poverty in the world, with a significant proportion of the impoverished population residing in just a few countries.
The Bretton Woods institution revealed that approximately 80 percent of the estimated 695 million individuals living in extreme poverty globally are located in this region in 2024. In comparison, South Asia accounts for 8 percent, East Asia and the Pacific for 2 percent, the Middle East and North Africa for 5 percent, and Latin America and the Caribbean for 3 percent.
“Within Sub-Saharan Africa, half of the 560 million extreme poor in 2024 resided in four countries,” the report highlighted.
It stated that non-resource-rich countries are expected to continue reducing poverty faster than resource-rich countries.
The organisation stated that, specifically for Nigeria and the Democratic Republic of Congo — both classified as resource-rich but fragile countries — poverty is expected to increase by 3.6 percentage points between 2022 and 2027.
“Importantly, poverty in resource-rich, fragile countries (which include large countries like the Democratic Republic of Congo and Nigeria) is expected to increase by 3.6 percentage points over 2022–27, being the only group in the region with increasing poverty rates.
“This follows a well-established pattern, whereby resource wealth combined with fragility or conflict is associated with the highest poverty rates—an average poverty rate of 46 per cent in 2024, 13 percentage points above non-fragile, resource-rich countries.”
Meanwhile, the World Bank said that non-resource-rich, non-fragile countries saw the biggest gains in poverty reduction since 2000 and fully closed the gap in poverty with other non-resource-rich countries by 2010.
‘Urbanisation could accelerate poverty reduction’
The World Bank said while most of the population of Africa and its highest levels of poverty are found in rural areas, rapid urbanisation could accelerate poverty reduction “under the right conditions”.
According to the bank, between 2010 and 2019, poverty reduction was primarily driven by urbanisation rather than significant decreases in poverty within rural or urban areas.
“In 2020, only 41 percent of the continent was urbanized, but the urban population is projected to grow by over 238 million by 2035, surpassing the rural population,” the report said.
“This rapid growth presents opportunities for the rural poor seeking to improve their livelihoods through migration.”
The group, however, stressed that the success of the transition would depend on the ability of urban areas to provide the necessary infrastructure, services, and employment opportunities to support the increased population.