By Jemimah Wellington, JKNewsMedia Reporter
ECONOMIC CONDITIONS in Nigeria continue to deteriorate, threatening the livelihoods of millions.
High inflation, surging interest rates, and a weakened naira are projected to push 13 million Nigerians into poverty by 2025, according to a report by PwC Nigeria.
The report, titled 2025 Budget and Economic Outlook, estimates that the poverty rate in Nigeria, already at 41.4% in 2023, will rise to 47.2% in 2024.
This trend, attributed to unrelenting macroeconomic pressures, has sparked widespread concerns over the nation’s economic stability.
PwC’s findings highlight the severe impact of inflation, which has driven up the cost of living, while the naira’s depreciation—losing approximately 41% of its value last year—has further eroded purchasing power.
Interest rates, raised to record levels, have compounded the economic burden for households and businesses.
The National Bureau of Statistics (NBS) reports that nearly two-thirds of Nigerian households can no longer afford to eat healthy, nutritious, or preferred meals, a figure that has risen by 80% compared to five years ago.
This reflects the worsening cost-of-living crisis, which has left many families struggling to secure even basic necessities.
The root of Nigeria’s economic challenges is tied to policy reforms introduced in mid-2023 by President Bola Tinubu’s administration.
While aimed at addressing long-term structural issues, these reforms have inadvertently intensified inflationary pressures, driving millions deeper into poverty.
Extreme poverty, defined by the World Bank as living on less than $2.15 per day, now affects an alarming portion of Nigeria’s population, with 129 million people projected to fall below the poverty line by 2024.
This is in stark contrast to Nigeria’s population of approximately 220 million, underlining the scale of the crisis.
Despite these grim projections, there is a glimmer of hope, according to the NBS.
The federal government’s plans to reduce inflation to 15% this year are seen as a crucial step toward alleviating poverty.
Additionally, renewed incentives in the agricultural sector offer potential to bolster food security and income generation, though experts warn that low productivity levels remain a major hurdle.
Analysts note they believe that meeting the government’s inflation targets could improve living conditions and slow the rise in poverty.
However, achieving these goals will require robust implementation of policies that balance economic growth with social protection for Nigeria’s most vulnerable citizens, they also noted.
