World Bank Cries Out Again Over Alarming Poverty Rate In Nigeria

The World Bank has once again cried out over the poverty rate in Nigeria  that could become worse in the next ten years with up to 30 million people expected to fall into extreme poverty.

This, it said, can only be prevented by Federal Government policy reforms.

“Nigeria’s population is expected to grow by as much as 35 million in the next decade and unless the pace of growth and job creation accelerates, the country will account for a quarter of all people living in extreme poverty worldwide.”Creating new opportunities for this rapidly increasing labour force will require a new economic model based on productivity growth,” warned Marco Hernandez, World Bank Lead Economist for Nigeria, and co-author of the latest Nigeria Economic Update.

“Without robust productivity growth, the report warns that living standards will continue to deteriorate, and the number of people living in poverty will continue to rise, increasing by more than 30 million by 2030,” the report said. It said Nigeria could enable millions of citizens escape poverty over the next decade through enacting bold reforms designed to boost economic productivity, according to the latest economic analysis.

It said, “The country’s growth outlook is vulnerable to domestic and global risks. It is facing a sharper than expected slowdown in the global economy, as well as geopolitical and trade tensions.“Domestically, the predictability of macroeconomic policies, the pace of structural reforms, and the country’s security situation are the main risks.”

“How successfully the economy transforms land, labour, capital and other inputs into goods and services–was low compared to peer countries, hindering economic growth, job creation, and living standards.”

The report outlines four priority areas for a transition to a new economic model for Nigeria, harnessing it’s large population and natural resources to aid growth and poverty reduction.

The areas include policy transparency and predictability, massive investments in infrastructure, strengthening of land tenure security, and improved access to finance to enable new firms compete with existing ones.