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Economic Reforms: Nigerians Under Poverty Line Rise To 104m — World Bank

Published

2 years ago

December 14, 2023

A World Bank report has indicated that Nigeria’s poverty level has taken a notch higher, at the backdrop of the recent economic and fiscal reforms.

The key reforms include the removal of petrol subsidy and the foreign exchange market rate restructuring.

The bank, however, commended the Federal Government for what it considered ‘bold reforms’ necessary to rescue Nigeria from fiscal cliff, describing the current pains as temporary.

But it also said the policies have created intense pressures on cost of living, which have pushed more Nigerians into hardship, with 104 million now living below the poverty line.

The World Bank report also indicated that the number of poor people in Nigeria had grown from 95 million in 2021 to 100 million in 2022, while the Nigerian Bureau of Statistics, NBS, indicated that the figure was 82.9 million in 2019 and 85.2 million in 2020.

In its World Bank Nigeria Development Update, NDP, entitled ‘Turning the Corner: Time to Move From Reforms to Results’, the bank stresses the need to continue with the reform momentum to complete the reforms and to address the costs of the reforms.

It further stated: ‘‘Inflation remains at record high levels for Nigeria, 27.3 per cent Year-on-Year, YoY, in October 2023, partly driven by the one-off price impacts of the removal of the gasoline subsidy.

‘‘The impact of this is especially hard on poor and vulnerable citizens. The FX market has remained volatile and in a period of continuing adjustment to the new policy approach, with significant fluctuations in the exchange rate in both the official and the parallel markets. Revenue gains from the FX reform are visible.

‘‘However, there is a need for more clarity on oil revenues, especially the financial gains of Nigeria National Petroleum Corporation Limited, NNPCL, from the subsidy removal, the subsidy arrears that are still being deducted, and the impact of this on Federation revenues.”

In his appraisal of the country’s reforms, Shubham Chaudhuri, World Bank Country Director for Nigeria, stated: “The petrol subsidy and FX management reforms are critical steps in the right direction towards improving Nigeria’s economic outlook. Now is the time to truly turn the corner by ensuring coordinated fiscal and monetary policy actions in the short to medium term.

“Continued reform implementation can ensure that Nigeria benefits from the difficult adjustments underway. This includes ensuring that improved oil revenues following the sharply increased PMS price accrue to the Federation.

‘‘In the medium-term, the economy will then begin to benefit from increasing fiscal space for development spending, including on power and transport infrastructure, as well as on human capital.”

He further said that between N300 billion –N400 billion was expended on fuel subsidy monthly, before the subsidy removal and that the expectation was that the NNPCL should have been paying such amount to the Federation Account, but which has not been the case.

World Bank’s recommendations
The latest NDU report recommended specific actions required to further sustain and achieve the full benefits of reforms already embarked on by the Government.

These include: controlling inflation and improving the stability of the FX market; achieving fiscal consolidation by sustaining savings from the PMS subsidy reform and improving non-oil revenues; addressing structural barriers to growth, such as removing trade barriers.

It stated further: “With the continued implementation of macroeconomic stabilization reforms, Nigeria’s economy is expected to grow at an average annual rate of 3.5 per cent in 2023-2026, or 0.5 per centage points higher than in a scenario where the reforms had not been implemented.”

Alex Sienaert, World Bank Lead Economist for Nigeria and co-author of the Report, also stated: ‘‘In 2024, Nigeria has an opportunity to turn the corner to a more stable and predictable macroeconomic environment, and easier access to foreign exchange (FX) and imported inputs, which is critical to creating new jobs and lifting people out of poverty”.

The NDU report indicated that Nigeria was not yet out of the woods but on the path to full recovery, as a result of the various policies being implemented by both fiscal and monetary authorities.

The World Bank called on the Nigerian National Petroleum Company Limited (NNPCL) to make public its Statement of Accounts and transparently disclose its revenue inflows.

The report read in part, “The removal of the subsidy was announced on May 29 and pump prices were adjusted on June1.

“This results in expected fiscal savings of around N2 trillion in 2023 or 0.9 per cent of GDP.

“Between 2023 and 2025, the expected gains are over N11 trillion, against a scenario in which the subsidy had continued’’.

NNPCL’s account for scrutiny —Edun

The Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, also insisted that NNPCL’s account must be audited.

His words, “There will be earnest scrutiny and I am sure NNPC is getting ready for that. We want revenue to come into the government coffers from NNPC and all other revenue agencies.”

The last two Minister of Finance, namely, Mrs. Kemi Adeosun and Mrs. Zainab Ahmed had publicly said that the accounts of the NNPCL would be looked into, but there has been no report of such audit made public.

Mr. Edun also revealed that the federal government would come up with a new structure of salaries in 2024.

He did not give details, other than that it was statutory to review salaries every five years, according to the Salaries and Wages Commission Act and that all stakeholders including labour leadership would be involved.

Huge FX in Domiciliary Accounts
The Minister of Finance revealed that wealthy Nigerians were holding huge sums of dollars and other foreign currencies in their Domiciliary bank accounts in the country.

According to him, there was a lot of FX liquidity in Nigeria and the Federal Government would take steps to make holders of such accounts release the money.

Mr. Edun said that the government would not force holders of such accounts to give them up but would provide incentives to enable them invest in attractive instruments, going forward.

I‘m not against quasi-fiscal interventions but —Cardoso

The Governor of the Central bank of Nigeria, Mr. Olayemi Cardoso, who was a panelist at the NDU presentation said that he was not against quasi fiscal interventions by the CBN but that his focus would remain how to reduce inflation through price stability.

On the controversy around his failure to convene a Monetary Policy Meeting since coming into office, the governor said that the past frequent MPCs did not achieve their objectives and that he would not continue along that line.

His words, “To what extent did the meetings achieve their objectives? The answer is no. That is why we have chosen to do it differently. Holding these meetings take a lot of time and energy.”

According to him, his team holds Liquidity Management meetings every 8.00 am to review the liquidity situation in the system and that he would take every necessary action to mop up excess liquidity in the system, adding, “we have increase OMO (Open Market Operations) both in value and volume.”

Industry Minister counters W/Bank on power subsidy

In her contribution, the Minister of Industry, Doris Uzoka-Anite, disagreed with the position of the World bank on Power subsidy.

The bank had advocated a power regime without subsidy in order to boost investor confidence and ensure a cost- reflective tariff.

However, the minister insisted, “there is nothing wrong with power sector subsidy. Subsidy in the power sector is subsidy that supports production. Countries everywhere support production and export.”
VANGUARD

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Nnamdi Kanu’s Case Proof Of Religious Persecution In Nigeria – US lawmaker, John James

Published

1 day ago

November 20, 2025

Editor

Former chairman of the Africa Subcommittee and now a member of the Energy and Commerce Committee, Representative, John James, has claimed that the case of Nnamdi Kanu, the leader of the Indigenous People of Biafra, IPOB, is proof of religious persecution in Nigeria.

James stated this when the United States House Subcommittee on Africa on Thursday, held a public hearing to review President Donald Trump’s recent redesignation of Nigeria as a Country of Particular Concern.

The hearing in Washington, DC included senior US State Department officials and Nigerian religious leaders.

James claimed that in the case of Nnamdi Kanu, Nigeria’s Court of Appeal had struck down the charges against him and ordered his release in 2022.

He said: “Religious persecution is tied to political repression and weakening institutions in Nigeria. The detention of Mazi Nnamdi Kanu is a clear example.

“In 2022, Nigeria’s Court of Appeals struck down the charges against him and ordered his release.

“The UN Working Group for Arbitrary Detention has also called for his unconditional release, yet he remains in solitary confinement in deteriorating health and recently had to represent himself in court.

“Nigeria has signaled that the law is optional and targeting Christians is fair game. Just hours ago this morning, despite the pleas and cries of Nigerian people and many Nigerian lawmakers, Kanu was convicted on all charges.”

Nnamdi Kanu was on Thursday, sentenced to life imprisonment over terrorism charges.

Headline

Nigerians Don’t Trust Their Govt – US Congressman Riley Moore

Published

1 day ago

November 20, 2025

Editor

US Congressman Riley Moore has said that Nigerian people do not trust their government.

Moore stated this on Thursday at US House of Representatives Subcommittee on Africa, which is investigating Trump’s redesignation of Nigeria as a ‘Country of Particular Concern’, CPC.

“The Nigerian people don’t trust their government. ‘How can you trust a government that doesn’t show up when you ask them to?

“The Nigerian government must work with the US in cooperation to address these insecurity issues.

“A case that just happened recently in Plateau state. We had a pastor there who warned the Nigerian government that they were under attack. There’s imminent attack forces here in the next 24 hours. Please come and help us.

“The Nigerian government did not only ignore it but put up a press release that it is fake news,” he said.

Moore would be meeting with a delegation of senior members of the Nigerian government, over the devastating insecurity in Nigeria and the US designation of the country as CPC, DAILY POST reports.

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US Makes U-turn, To Attend G20 Summit In South Africa

Published

1 day ago

November 20, 2025

Editor

In an 11th-hour about-turn, the United States has told South Africa it wants to take part in this weekend’s G20 summit in Johannesburg, President Cyril Ramaphosa said Thursday.

President Donald Trump’s administration had said it would not take part in the November 22-23 meeting and that no final statement by G20 leaders could be issued without its presence.

It has clashed with South Africa over various international and domestic policies this year, extending its objections to Pretoria’s G20 priorities for the meeting of leading economies being held for the first time in Africa.

“We have received notice from the United States, a notice which we are still in discussions with them over, about a change of mind about participating in one shape, form or other in the summit,” Ramaphosa told reporters.

“This comes at the late hour before the summit begins. And so therefore, we do need to engage in those types of discussions to see how practical it is and what it finally really means,” he said.

There was no immediate confirmation from US officials.

Ramaphosa said: “We still need to engage with them to understand fully what their participation at the 11th hour means and how it will manifest itself.”

In a note to the government on Saturday, the US embassy repeated that it would not attend the summit, saying South Africa’s G20 priorities “run counter to the US policy views and we cannot support consensus on any documents negotiated under your presidency”.

Ramaphosa said earlier Thursday that South Africa would not be bullied.

“It cannot be that a country’s geographical location or income or army determines who has a voice and who is spoken down to,” he told delegates at a G20 curtain-raiser event.

There “should be no bullying of one nation by another”, he said.

– ‘Positive sign’ –
Ramaphosa said the apparent change of heart was “a positive sign”.

“All countries are here, and the United States, the biggest economy in the world, needs to be here,” he said.

South Africa chose “Solidarity, Equality, Sustainability” as the theme of its presidency of the G20, which comprises 19 countries and two regional bodies, the European Union and the African Union.

Its agenda focuses on strengthening disaster resilience, improving debt sustainability for low-income countries, financing a “just energy transition” and harnessing “critical minerals for inclusive growth and sustainable development”.

After early objections from Washington, it vowed to press on with its programme and its aim to find consensus on a leaders’ statement on the outcome of the discussions.

“We will not be told by anyone who is absent that we cannot adopt a declaration or make any decisions at the summit,” Foreign Minister Ronald Lamola said Thursday.

Trump has singled out South Africa for harsh treatment on a number of issues since he returned to the White House in January, notably making debunked claims of white Afrikaners being systematically “killed and slaughtered” in the country.

He expelled South Africa’s ambassador in March and has imposed 30 percent trade tariffs, the highest in sub-Saharan Africa.

US businesses were well represented at a separate Business 20 (B20) event that wound up in Johannesburg Thursday.

The head of the US Chamber of Commerce, Suzanne Clark, thanked South Africa for fostering “real collaboration between G20 nations during a time of rapid change” during its rotating presidency, which transfers to the United States for 2026.

“The US Chamber of Commerce will use our B20 leadership to foster international collaboration,” Clark said.

The United States has significant business interests in South Africa with more than 600 US companies operating in the country, according to the South African embassy in Washington.

G20 members account for 85 percent of global GDP and around two-thirds of the world’s population.