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Inflation: 129 Million Nigerians Living In Poverty — World Bank
The World Bank has released the Nigeria Development Update report, stating that over 129 million Nigerians are currently trapped in poverty.
It released the report on Thursday in Abuja as headline inflation rises, forcing millions of Nigerians into hunger.
According to the global financial body, the over 129 million Nigerians represented a sharp rise from 40.1 per cent in 2018 to 56 per cent in 2024.
The World Bank report read, “With growth proving too slow to outpace inflation, poverty has risen sharply. Since 2018, the share of Nigerians living below the national poverty line16 is estimated to have risen sharply from 40.1 per cent to 56.0 per cent.
“Combined with population growth, this means that some 129 million Nigerians are living in poverty. This stark increase partly reflects Nigeria’s beleaguered growth record. Real GDP per capita has not recovered to the level it was at prior to the oil price-induced recession in 2016.
“The COVID-19 pandemic compounded this drop in economic activity. Moreover, growth is failing to outpace inflation: large increases in prices across almost all goods have diminished purchasing power.”
It added, “Multiple shocks in a context of high economic insecurity have deepened and broadened poverty, with over 115 million Nigerians estimated to have been poor in 2023. Since 2018/19, an additional nearly 35 million people have fallen into poverty, so that more than half of Nigerians (51.1 per cent of the population in 2023) are now estimated to live in poverty.”
According to the report, there was an increase from 115 million in 2023 to 129 million in 2024, which means that 14 million Nigerians have become poorer this year.
The Washington-based bank attributed this surge to inflation, poor economic management, and external shocks.
“Several shocks have contributed to this major increase and changing profile of the poor: the COVID-19 recession, natural disasters such as flooding, growing insecurity, the high cost of the demonetization policy in Q1 2023, high inflation, and low economic growth.
“Previous domestic policy missteps compounded the effects of the shocks, particularly rising inflation, eroding the purchasing power, especially of urban households, pushing many into poverty. The government is ramping up the cash transfer programs to support economically insecure households to help weather the crisis,” the report noted.
It further revealed that while poverty remained a rural phenomenon, urban poverty had grown significantly, with 31.3 per cent of urban dwellers now living in poverty, up from 18 per cent in 2018.
The new World Bank report also noted, “Being employed, however, is no guarantee of being able to escape poverty. Many jobs are not productive and therefore remunerative enough to afford a life beyond poverty.”
It added, “Jobs hold the key to sharing the proceeds of growth. Since Nigeria has a young and growing population, the jobs that can harness the country’s potential ‘demographic dividend’ are needed now.”
Sienaert also dismissed claims that the institution seeks to keep Nigeria economically dependent.
“I’m in this position of having been the lead economist at the World Bank here in Nigeria on economic policy issues for two years now, and I just want to tell you that I’ve not seen any conspiracy within the World Bank or otherwise to keep Nigeria down,” Sienaert said.
He pointed out that Nigeria’s fiscal deficit had shrunk from 6.2 per cent of GDP in 2022 to 4.4 per cent in the first half of 2023, thanks to reforms such as the removal of FX and fuel subsidies.
Meanwhile, the World Bank Country Director for Nigeria, Dr Ndiame Diop, urged the Federal Government to sustain its reforms, warning that reversing them would be disastrous.
Diop cautioned that “reversing these reforms would be detrimental and would spell doom for Nigeria.”
He acknowledged that the reforms are difficult but essential to stabilise the economy.
Diop also noted that the World Bank is willing to offer Nigeria more loans as well as technical assistance in support of ongoing reforms.
Answering a question about whether the World Bank will keep providing loans to Nigeria, Diop said “Yes, we do have in the pipeline for this fiscal year several projects financed by the World Bank. These are government projects, implemented mostly by the states.”
He added, “Nigeria is a very important partner for the World Bank. We have been providing technical support, but also financing. But what is really important is that our financing comes with technical support and implementation support, and really making sure things go according to plan.”
The average price of commodities in Nigeria has increased by 45.92 per cent to 32.70 per cent as the headline inflation rate in September 2024 since Tinubu assumed office in May 2023.
This rate is from 22.41 per cent recorded in May 2023, indicating a 10 percentage point increase.
The Inflation rate escalated for 13 consecutive months due to various factors, including the removal of fuel subsidy, which led to increased transportation and production costs, and the depreciation of the naira against major currencies.
A breakdown of the National Bureau of Statistics monthly inflation report showed that the average price of commodities moved from 22.41 per cent in May to 22.79 per cent in June. In July, the rate increased by 1.29 per cent to 24.08 inflation rate. August inflation was 25.80 per cent, September (26.72), October(27.33), November (28.20), December (28.92).
As of late 2023, inflation surged, driven by higher prices for food, energy, and essential goods.
By January 2024, the inflation rate increased further to 29.90 per cent, mainly on the cost of food items.
It was 31.70 per cent in February, 33.20 per cent in March, 33.69 per cent in April, 33.95 per cent inMay, and 34.19 per cent in June 2024 before it dropped to 33.40 per cent in July, 32.15 per cent in August and 32.70 per cent in September.
A Bill for an Act to provide for the establishment of an Independent Authority for the registration, regulation, and funding of political parties in Nigeria has scaled second reading in the House of Representatives.
The bill seeks to establish a dispute tribunal and regulate the funding of political parties as well as utilisation of the funds.
The bill, which was sponsored by the Speaker of the House, Tajudeen Abbas, and another lawmaker, Marcus Onobun, further seeks to ensure transparency and a stable democracy.
At the moment, there are 19 registered political parties in Nigeria. The roles to be performed by the new independent authority are currently the responsibilities of the Independent National Electoral Commission (INEC).
The independence and neutrality of INEC have been questioned by many including former President Goodluck Jonathan and former INEC Chairman Attahiru Jega, who decried the influence of political interference on the appointments of electoral commissioners.
“The electoral commission must be fully independent and we must have credible people. Political leaders who are so domineering and over-pressuring you (INEC staffers) to do what is wrong should resign and leave,” Jonathan said at a Yiaga event recently.
Similarly, Jega said, “There is political interference in the appointment or removal of electoral commissioners and other election officials.”
Bishop Isaac Idahosa, the 2023 Vice Presidential Candidate of the New Nigeria People’s Party (NNPP), also lamented that nobody puts INEC in check.
Meanwhile, INEC chairman Mahmood Yakubu has been pushing for the creation of an electoral offence tribunal.
“A major obstacle to the speedy dispensation of justice in this regard is that electoral offences are not time-bound as is the case with post-election offences through the tribunals. Furthermore, they are solely prosecuted by the Magistrate and State High Courts in the jurisdiction where the alleged offences are committed.
“No priority attention is given to such cases as the courts deal with a variety of other cases. Consequently, electoral offences are carried over from one General Election to another which may sometimes affect the diligent prosecution of the cases.
“It is therefore imperative to renew our call for the creation of the Electoral Offences Tribunal that has a specific jurisdiction and limited timeframe for the speedy dispensation of cases,” he said.
The National Association of Nigerian Students (NANS) has called on Senate President Godswill Akpabio to remain committed to fostering a strong working relationship between the National Assembly and President Bola Ahmed Tinubu’s administration.
In a statement released on Monday, NANS President-elect Comrade Oladoja Olushola emphasized the importance of synergy between the two arms of government in delivering democratic dividends to Nigerians.
“Leadership is often tested by storms, but true leaders rise above turbulence to achieve remarkable progress,” Olushola said.
The student body expressed concerns over the current political climate in the Senate, warning that it could undermine good governance and disrupt effective collaboration between the legislature and other arms of government.
“As Nigerian students, we will not stand idly by while the integrity of our political institutions is eroded,” Olushola stated.
“We call for calm, restraint, and a renewed commitment to peace-building for national progress and the well-being of all Nigerians.”
While reaffirming its confidence in the leadership of the 10th Senate under Akpabio, NANS stressed the need to uphold accountability and maintain the integrity of the legislative process.
Addressing the ongoing controversy in the Senate, the student body urged all lawmakers to adhere strictly to legislative rules and avoid actions that could destabilize governance.
“It is crucial that we maintain a high standard of accountability to uphold public trust and confidence in our government,” Olushola said.
Given the ongoing legal proceedings concerning the matter, NANS advised all parties involved to exercise caution and refrain from making statements that could inflame tensions.
The association further recommended that disciplinary action be taken against any senator found guilty of misconduct after a court verdict, warning that continued unrest could escalate political tensions and deepen national divisions.
“If these tensions persist, they risk further heating up the political landscape, triggering unintended negative consequences for both the Senate and the country,” Olushola said .
The Defence Headquarters has said the military is working assiduously to free the South East geo-political zone from the activities of the proscribed Indigenous People of Biafra (IPOB) and its Eastern Security Network (ESN).
The Director, Defence Media Operations, Maj.-Gen. Markus Kangye, gave the assurance while briefing newsmen on recent operations of the military on Thursday in Abuja.
According to him, the the sit-at-home order in the region still exists because some residents still obey the order out of fear.
He said that the troops of Operation Udoka had been carrying out decisive operations in the region.
“If they give them sit -at-home order, they will tell them go about your normal business, but the locals in some areas, for fear of being attacked or being killed, will stay at home.
“The commanders under that operation are doing their best to ensure that Southeast is free from IPOB/ESN,” he said.
Kangye also urged the public to trust the information released by the military on its activities instead of what was being released by any other group.
According to him, reports emanating from the military reflects the correct situation about counter-terrorism efforts in the country than those from outsiders.
“Something is happening in my house. I am the head of the house, I have children, I have wife and someone else is reporting what is happening in my house to me. Which one would be more correct?
“The one that I will tell you as the head of the house , or the one that the outside is reporting from outside?
“The one I think that will give you the correct information is that of the head of the house.
“So you, as a member of the media, that attends this meeting every week, you should be able to stand and correct what they are giving Nigerians,” he said.
Kangye said he was not going to counter the recent report of the Global Terrorism Index, urging the media to give the correct version of happenings in the country.
He said, “I’m not countering what they put out there, but as observers, I think you should be the better person that will give the correct version of what is happening in Nigeria,” he added. (NAN)