The World Bank’s alarming prediction that Nigeria’s poverty rate will increase by 56% by 2027 has sparked concerns among the nation’s economic leaders. The report highlights that nearly half of Nigeria’s population, or about 104 million people, were living in poverty in 2023, up from 40% in 2018. Economic growth, high inflation, and widening gaps between urban and rural areas are contributing to this trend, with rural communities seeing the most severe impacts.
As the poverty gap deepens, the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and the Organized Private Sector of Nigeria (OPSN) have called for immediate action to mitigate the crisis. Dele Oye, NACCIMA President, outlined several key measures, including targeted economic stimulus packages and increased investment in agriculture and microfinance.
Oye stressed the importance of providing direct support to vulnerable populations through cash transfers, food assistance, and help for small and medium-sized enterprises (SMEs) to create jobs. He also advocated for expanding access to credit, particularly for women and youth, and enhancing vocational training programs to reduce unemployment and foster new entrepreneurial opportunities.
The NACCIMA president emphasized the need for government-led improvements in infrastructure, especially in rural areas, to improve market access for farmers and businesses. He also recommended tax incentives for companies investing in underserved regions and called for a review of recent tax policies that might deter investment.
Security challenges, such as insurgencies and armed groups disrupting agricultural activities, are further exacerbating rural poverty. Oye urged the government to prioritize restoring peace and stability to support agricultural productivity.
To bolster Africa’s economic prospects, Oye highlighted the potential of intra-African trade, particularly through the African Continental Free Trade Area (AfCFTA). He argued that Nigeria should focus on local manufacturing rather than relying on raw material exports, a shift that could drive significant poverty reduction.
On the issue of Nigeria’s rising debt, Oye noted that the country’s public debt had surged to N144.67 trillion ($94.23 billion) by December 2024, underscoring the need for long-term strategies to address debt sustainability.
With the World Bank’s forecast looming large, Oye concluded that swift and effective action is crucial to shield Nigeria’s most vulnerable populations from the worsening economic crisis. NACCIMA remains committed to collaborating with all stakeholders to foster sustainable growth and improve the livelihoods of Nigerians.
