Nigeria’s strongest growth outlook since 2015 unlikely to significantly reduce poverty

Story: written by Uzuh Rita January 20,2026
Nigeria is projected to record its fastest economic growth rate since 2015, but analysts warn that the expansion may not translate into meaningful poverty reduction for millions of citizens.
Despite improving macroeconomic indicators and renewed reform momentum, economic growth remains uneven and largely disconnected from household welfare. Rising output has been driven mainly by the services sector and reform-induced price adjustments, while agriculture and manufacturing, which employ a large share of the population, continue to face structural constraints.
High inflation, elevated unemployment, and weak purchasing power are eroding the potential benefits of growth. Many households are struggling with the rising cost of food, energy, and transportation, limiting the impact of economic expansion on living standards. Experts note that without strong job creation and productivity gains, growth figures alone will not lift a significant number of Nigerians out of poverty.
In addition, income inequality and regional disparities persist, with growth concentrated in urban centers and capital-intensive sectors. Social safety nets remain limited, and public spending pressures have increased amid fiscal consolidation efforts, further constraining the government’s ability to cushion vulnerable populations.
Economists argue that for growth to translate into broad-based poverty reduction, Nigeria must deepen structural reforms, invest in human capital, strengthen agriculture and small businesses, and prioritize inclusive policies that generate employment. Without these measures, the fastest growth in a decade may improve macroeconomic stability but leave poverty levels largely unchanged.