Nigeria’s poverty rate is forecast to climb alarmingly to 62 per cent by 2026, pushing approximately 141 million citizens below the poverty line, according to a new report by PwC.
Okay News reports that the projection, detailed in PwC’s Nigeria Economic Outlook 2026 titled “Turning Macroeconomic Stability into Sustainable Growth,” highlights persistent challenges despite efforts to stabilise the economy.
The firm attributes the expected rise to weak real income growth, lingering high inflation, and elevated living costs that continue eroding household purchasing power.
PwC notes that most Nigerians will struggle to achieve income gains sufficient to offset price increases in the near term.
Food inflation remains a critical driver, with food expenditure accounting for up to 70 per cent of consumption among low-income households, leaving them highly vulnerable to price shocks.
Even as headline inflation moderates gradually, underlying factors like high energy costs, logistics expenses, and exchange rate pass-through will sustain upward pressure on essential goods.
The report warns that escalating poverty poses substantial risks to economic stability, potentially weakening domestic consumption, constraining productivity, and straining public finances further.
The World Bank’s Nigeria Development Update echoes these concerns, estimating the absolute number of poor Nigerians rose from 81 million in 2019 to roughly 139 million in 2025—nearly 62 per cent of the population.
Earlier figures indicate about 115 million in poverty in 2023, increasing to around 129 million in 2024, meaning 14 million people fell into poverty within a single year.
Both institutions emphasise that without robust interventions—such as accelerated job creation, productivity enhancements, and effective social protection programmes—reversing the trend will prove extremely difficult.
Rising poverty could exacerbate inequality, dampen growth prospects, and heighten social tensions if unaddressed.
PwC stresses the urgency of targeted policies to protect vulnerable groups and stimulate inclusive expansion.
The outlook underscores the delicate balance between macroeconomic stabilisation and tangible improvements in living standards for ordinary Nigerians.
