Nigeria’s economic future is under growing scrutiny after the World Bank and the International Monetary Fund (IMF) painted a bleak picture of the country’s financial trajectory.
During the recently concluded 2025 Spring meetings in Washington, D.C., both global financial institutions downgraded Nigeria’s growth forecast and warned that the nation’s poverty rate is expected to climb sharply by 2027 unless urgent reforms are implemented.
The World Bank’s assessment reveals that the country’s economic policy reforms have largely failed to address issues of inclusive growth.
The international body has highlighted that these shortcomings could lead to a deeper poverty crisis, with the nation’s poverty rate projected to rise by 3.6 percentage points in the next two years.
This warning has ignited concerns across the nation, especially among Civil Society Organisations (CSOs) and economic analysts who have been monitoring Nigeria’s economic developments. According to them, urgent action is needed to mitigate the effects of this impending crisis and avoid a full-blown economic disaster.
Reacting to the World Bank’s forecast, Muda Yusuf, the Director-General of the Lagos Chamber of Commerce and Industry (LCCI), stressed the need for the government to address the root causes of poverty in Nigeria.
Yusuf pointed out that poor governance, infrastructural deficiencies, and an over-reliance on oil exports have contributed significantly to the current economic stagnation.
He called for reforms that would stimulate job creation, improve public services, and diversify the economy.
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) also expressed alarm at the projection but suggested short-term interventions to prevent further decline.
Dele Oye, NACCIMA’s President, highlighted the importance of boosting local production and reducing the cost of doing business in Nigeria.
He emphasized that government policies should focus on creating a conducive environment for businesses to thrive, with particular attention to energy, transport, and communication infrastructure.
On the ground, ActionAid Nigeria (AAN) has voiced its concerns about the worsening economic conditions, though it was not surprised by the World Bank’s report.
AAN’s Country Director, Andrew Mamedu, stated that the forecasted rise in poverty levels is a reflection of years of systemic failure and ineffective government policies.
“We have been warning about this for years,” Mamedu said, adding that the lack of social safety nets and inadequate investment in critical sectors such as health and education have exacerbated the poverty situation in Nigeria.
The World Bank’s report suggests that the rising poverty levels could be compounded by several factors, including inflation, unemployment, and the growing economic disparities between urban and rural areas.
It also noted that the global economic environment, marked by rising commodity prices and geopolitical tensions, could further hinder Nigeria’s recovery efforts.
As Nigeria grapples with these challenges, experts agree that comprehensive policy reforms and a renewed focus on social inclusion are key to reversing the nation’s economic decline.
With 2027 fast approaching, the pressure is on for the Nigerian government to act swiftly and decisively to avoid the grim forecast of worsening poverty and a deteriorating economy.
In the coming months, it will be crucial to watch how Nigeria’s policymakers respond to these warnings, and whether they can implement the reforms necessary to turn the country’s fortunes around before it’s too late.
