Business
Poverty skyrocketed under APC within 6 years- Global body
By Philippine Duru
philippineobetoduru@gmail.com
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Nigeria’s economic reforms have begun to strengthen macroeconomic stability, but rising poverty and food insecurity continue to weigh heavily on millions of citizens, the International Monetary Fund has said.
In its latest assessment of Nigeria’s economy released on Tuesday, the IMF acknowledged that reforms introduced by President Bola Tinubu’s administration over the past three years had improved key economic indicators and enhanced the country’s resilience.
“Strong reforms over the past three years have yielded improved macroeconomic outcomes and built resilience,” the IMF said in a statement issued after its annual review of Nigeria’s economy.
The Fund, however, cautioned that the benefits of the reforms had yet to translate into improved living conditions for a significant portion of the population.
“Still, conditions for many Nigerians remain difficult,” it added.
Since assuming office, President Tinubu has implemented a series of major economic reforms, including the removal of the long-standing fuel subsidy, the liberalisation of the foreign exchange market, and changes to the country’s tax framework. Economists had long advocated for such measures, describing them as necessary to address structural imbalances in the economy.
Despite these efforts, the IMF reported that poverty levels have continued to rise, with about 63 per cent of Nigerians estimated to be living below the poverty line by the end of 2025.
The organisation also disclosed that more than 27 million Nigerians experienced food insecurity during the same period.
The IMF’s findings align with earlier reports by the World Bank, which stated that approximately 61 per cent of Nigerians were living in poverty, compared to 40 per cent in 2019. According to the World Bank, about three-quarters of the increase in poverty occurred before Tinubu assumed office in 2023.
The Fund further identified widespread insecurity, particularly in northern Nigeria where much of the country’s food production takes place, as a major threat to livelihoods and economic activity.
“Another risk to people and economic activity” is the persistent insecurity caused by armed groups, especially in regions critical to agricultural production, the IMF noted.
Meanwhile, inflationary pressures remain a concern. Nigeria’s inflation rate rose to 15.7 per cent in April, marking a five-month high, according to the latest official figures.
Analysts attributed the increase partly to higher global fuel prices linked to the ongoing conflict in the Middle East.
The IMF warned that although rising prices for food, fertiliser and fuel could increase government revenues due to Nigeria’s status as Africa’s largest oil producer, they could also worsen the cost-of-living crisis for vulnerable households.
The higher costs, the Fund said, could intensify inflationary pressures on poorer Nigerians, “potentially aggravating poverty and food insecurity.”
The report comes as Nigeria prepares for the next general election scheduled for January, with President Tinubu expected to seek a second term in office.