- Safiu Kehinde
The World Bank has warned of an increase in Nigeria’s poverty index by 3.6 percent as projected from 2022 through 2027.
This was contained in the Bank’s Africa’s Pulse report, released during the ongoing Spring Meetings of the International Monetary Fund (IMF) and the World Bank in Washington, DC.
According to the report, Nigeria will, alongside other resource-rich and fragile countries in Sub-Saharan Africa like the DR Congo, experience a worsening poverty situation—unlike non-resource-rich countries, which are expected to see faster poverty reduction.
“Poverty in resource-rich, fragile countries—including large economies like Nigeria and the Democratic Republic of Congo—is projected to increase by 3.6 percentage points between 2022 and 2027,” the report read.
This, according to the report, will be experienced across the resource-rich countries on account of slowing oil prices and weak fiscal structures.
In contrast, non-resource-rich countries are expected to benefit from high agricultural commodity prices, which are fueling stronger growth despite fiscal pressures.
The World Bank, however, recommended that Nigeria and similar economies focus on improving fiscal management and building a stronger fiscal contract with citizens to promote inclusive economic development and long-term poverty alleviation.