PDP Is Transforming, Not Falling Apart – Saraki Dares Defectors to Walk Away”

The World Bank’s latest report, Africa’s Pulse, paints a bleak outlook for Nigeria, forecasting a rise in poverty levels by 3.6 percentage points by 2027. The report was released during the IMF and World Bank Spring Meetings in Washington, DC, and identifies Nigeria’s reliance on oil, economic fragility, and governance issues as primary contributors to this troubling trend.

The World Bank highlights the country’s structural economic weaknesses, including its dependence on oil revenues, which hinder meaningful poverty alleviation efforts. It further explains that nations rich in natural resources but with fragile economies, such as Nigeria, are likely to see an increase in poverty, with projections indicating that the poverty rate in such countries could rise significantly by 2027.

Despite some growth in Nigeria’s non-oil sector in the latter part of 2024, the World Bank cautions that this progress is unlikely to significantly reduce poverty due to ongoing fiscal and institutional challenges. It also underscores that Sub-Saharan Africa remains the world’s poorest region, home to 80% of the world’s extreme poor, with Nigeria being one of the hardest-hit countries.

The report further reveals a stark contrast between Nigeria and other regions like South Asia, which have experienced faster poverty reduction, aided by more resilient fiscal policies and stronger agricultural growth. The World Bank attributes Nigeria’s stagnating poverty reduction to its weakening oil prices and fragile governance systems.

To counter the rising poverty, the World Bank urges the Nigerian government to prioritize reforms aimed at promoting inclusive economic growth and improving fiscal management. The organization stresses the importance of a robust fiscal contract between the government and its citizens to foster long-term poverty alleviation.