Lack of transparency in public spending cast doubt on Nigeria’s economic recovery as 13 Million Nigerians slump in poverty

13 Million Nigerians to Fall into Poverty by 2025 as Debt Crisis, Budget Deficit, and Inflation Worsen – PwC Report

Nigeria’s economic challenges are deepening, with a staggering 13 million more Nigerians expected to fall below the poverty line by 2025, according to PwC Nigeria’s 2025 Budget and Economic Outlook report. The report projects the poverty rate will rise from 41.4% in 2023 to 47.2% in 2024, driven by soaring inflation, record-high interest rates, and a naira that depreciated by 41% in 2024.

Nigeria’s public debt crisis and widening budget deficit have compounded these challenges, leaving little fiscal room for poverty alleviation. As of 2024, Nigeria’s total public debt stands at over $115 billion, according to the Debt Management Office (DMO), with debt servicing consuming nearly 96% of government revenue. The federal government is also grappling with a record budget deficit of ₦11.34 trillion for 2024, forcing increased reliance on borrowing.

Unaccountable spending further dims hope for Nigerians. Despite lofty promises, much of the national budget continues to be allocated to opaque and non-priority expenditures, neglecting critical sectors like healthcare, education, and agriculture. Analysts argue this mismanagement worsens the plight of millions, with many households unable to afford three meals a day or meet basic needs.

Macroeconomic pressures were amplified by twin policies implemented in mid-2023 under President Bola Tinubu’s administration, including the removal of fuel subsidies and currency unification. While aimed at improving fiscal sustainability, these policies triggered inflation, with consumer prices rising above 25% in 2024—the highest in decades.

The World Bank reports that nearly 129 million Nigerians are living in extreme poverty, defined as earning less than $2.15 a day.

This accounts for over 58% of the country’s population of approximately 220 million. Additionally, data from the National Bureau of Statistics (NBS) shows that nearly two-thirds of households reported an inability to afford nutritious or preferred meals in the past month, marking an 80% increase from five years ago.

Though the government aims to reduce inflation to 15% by 2025, the growing debt crisis and a lack of transparency in public spending cast doubt on the country’s economic recovery.

Analysts warn that unless immediate reforms are made to prioritize accountable governance and investment in productive sectors, Nigeria’s poverty crisis could spiral further, dimming hopes for a stable and prosperous future.