As Nigeria continues to battle widening inequality and declining household welfare, the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, has attributed the rising poverty levels to what he described as limited economic returns for millions of citizens despite their diligence and productivity.
Bagudu made the remarks in Abuja during a strategic engagement with a delegation from the World Bank, led by the Regional Manager for Social Protection and Labour for West and Central Africa, Mr Robert Chase.
The minister’s position, released through an official statement from the ministry on Wednesday, offered a sharp appraisal of the country’s poverty dynamics and highlighted the urgency of scaling up coordinated interventions that deliver meaningful improvements in livelihoods.
FG, World Bank Renew Partnership to Address Limited Economic Returns
In his address, Bagudu reaffirmed the Federal Government’s commitment to deepening long-standing partnerships aimed at transforming Nigeria’s social protection landscape.
He said Nigeria’s ongoing macroeconomic reforms and social investment programmes had benefited significantly from the support of the World Bank, particularly in the areas of fiscal stabilisation, social welfare expansion, and incentivised state-level development.
According to him, despite Nigerians’ resilience and strong work ethic, their limited economic returns have hindered wealth creation and kept a large segment of the population trapped in cycles of deprivation.
The minister noted that while several social protection schemes exist, their collective impact can only be achieved through coherence, structural coordination, and a harmonised delivery framework across government tiers.
Bagudu also used the occasion to introduce the newly appointed Permanent Secretary, Dr Deborah Odoh, who was attending her first formal meeting with the World Bank team.
He commended her experience in social policy reforms and emphasised that her role would be central to implementing the Tinubu administration’s inclusive growth agenda.
Minister Pushes for Integrated Social Programmes
Speaking further, the minister said the Nigerian Constitution mandates every tier of government to pursue policies that promote social welfare, economic security, and inclusive development.
He explained that this constitutional mandate guides the ministry’s coordination of national social protection programmes.
Bagudu emphasised that initiatives such as NG-CARES, the Nigeria for Women Project, and the HOPE Agenda must operate within a unified ecosystem that eliminates duplication, resolves operational conflicts, and enhances participation at ward and community levels.
On poverty trends, he restated that most Nigerians are hardworking, but their productivity does not translate into sustainable income because of limited economic returns across the informal and formal sectors.
This, he said, makes it crucial to expand livelihood support programmes, strengthen the resilience of at-risk households, and widen pathways to economic opportunity, especially in the face of internal displacement and multidimensional poverty.
“Our obligation is to ensure that the ongoing reforms translate into measurable outcomes for ordinary Nigerians,” he said, noting that President Bola Tinubu had tasked the ministry with driving initiatives that will lift millions out of poverty by 2030 through improved efficiency, stronger coordination, and expanded financing.
World Bank Commits to Supporting Nigeria’s Reform Path
In her remarks, Dr Odoh expressed appreciation to the World Bank for its consistent support for Nigeria’s macroeconomic and social policies.
She described the institution as a dependable partner that had contributed significantly to the expansion of Nigeria’s social protection system, especially through state-level programmes.
Responding on behalf of the World Bank, Chase praised Nigeria’s innovation and leadership in implementing large-scale social interventions.
He described programmes such as NG-CARES as a continental model, noting that the World Bank’s $750m contribution had already been matched by more than $2.2bn in state-level investments across the country.
Chase explained that the first phase of NG-CARES would conclude in 2025, with additional financing to be approved by December 9 and rolled out fully by January 2026.
The next phase, he said, will expand cash transfers, strengthen national identification systems, and support livelihoods in line with the institution’s Country Partnership Framework for Nigeria.
Poverty Figures Continue to Raise Alarm
The meeting comes at a time when poverty statistics in Nigeria continue to reflect deepening hardship. In its October 2025 Nigeria Development Update, titled “From Policy to People: Bringing the Reform Gains Home”, the World Bank warned that the country risks losing progress made through recent macroeconomic reforms if the interventions fail to improve citizens’ welfare.
World Bank Country Director for Nigeria, Mathew Verghis, said in Abuja that an estimated 139 million Nigerians are now living in poverty.
This represents a sharp increase from the 129 million recorded in April 2025 and a dramatic rise from the 87 million documented in 2023.
According to Verghis, persistent inflation, structural barriers in key sectors, and the slow transmission of economic reforms into household welfare continue to undermine short-term gains.
He noted that living costs remain high and purchasing power continues to erode, especially for low-income families.
States Benefit From Social Protection Reimbursements
In July 2024, the Federal Government disbursed over N438bn in reimbursements to 34 states and the Federal Capital Territory under the Nigeria Community Action for Resilience and Economic Stimulus programme.
Zamfara, Nasarawa, and Plateau emerged as the highest earners with N49bn, N27bn, and N26bn, respectively.
Analysts say that while these interventions offer relief to households, the depth of poverty across the country remains a major challenge, particularly as millions of hardworking citizens still grapple with limited economic returns despite rising economic activity in certain sectors.
A Renewed March Toward Inclusive Growth
The renewed partnership between Nigeria and the World Bank signals an intensified focus on poverty reduction, resilience building, and inclusive economic growth.
For Bagudu, the goal is clear: translate policy reforms into tangible, measurable improvements in the everyday lives of Nigerians.
With new financing set to roll in and expanded programmes scheduled for launch in early 2026, stakeholders say there is cautious optimism that sustained coordination, wider intervention coverage, and continuous monitoring could help reverse Nigeria’s poverty trajectory.
