The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has called on the Federal Government to take urgent and decisive action to combat the escalating poverty crisis in Nigeria.
This appeal follows the World Bank’s April 2025 Africa’s Pulse report, which revealed that Nigeria accounts for 19% of the extremely poor population in sub-Saharan Africa, the highest share in the region.
This figure translates to over 106 million Nigerians living in extreme poverty, representing approximately 15% of the world’s poorest people.
The report also projects that Nigeria’s national poverty rate could surge to 56% by 2027, underscoring the severity of the crisis in Africa’s largest economy.
A Call for Pragmatic Policy Action
Reacting to the report, National President of NACCIMA and Chairman of the Organised Private Sector of Nigeria, Dele Kelvin Oye, described the findings as a stark reminder of the urgent threat posed by deepening poverty.
He highlighted key factors exacerbating the crisis, including surging inflation, youth migration, and an expanding fiscal deficit, all of which demand faster, targeted, and pragmatic policy interventions.
Oye criticized the Central Bank of Nigeria’s (CBN) monetary stance, noting that commercial lending rates of 30-40% are stifling entrepreneurship, industrial production, and agricultural expansion.
While these rates aim to curb inflation, they inadvertently suppress the private sector’s capacity for job creation and innovation.
To address these challenges, NACCIMA has called for targeted intervention funding and special credit windows for micro, small, and medium enterprises (MSMEs) and strategic sectors at concessionary rates. These measures, Oye argued, are essential to unlocking economic growth, employment opportunities, and food security.
Structural Reforms and Fiscal Discipline
Oye emphasized the need for rigorous public financial management, urging the Federal Government to:
- Prioritize capital spending over recurrent expenditures.
- Expand the tax base rather than increasing tax rates.
- Improve expenditure efficiency and eliminate financial leakages.
- Accelerate the sale or concessioning of underperforming public assets.
He also warned that the exodus of skilled youths, commonly referred to as “Japa,” is a troubling trend driven by economic disenfranchisement and insecurity. To counter this, Oye proposed mass-scale public works programs, digital skills training, and security sector investments in the most affected regions.
He stressed the importance of youth-targeted entrepreneurship initiatives and rural enterprise stimulation, particularly in agriculture and light manufacturing, to make staying in Nigeria a viable and attractive option.
Adapting to Global Economic Shifts
Oye highlighted the global shift in economic and geopolitical dynamics, including the declining dominance of the U.S. dollar due to reduced U.S. global share, overuse of dollar-based sanctions, and advancements in digital settlement systems beyond traditional mechanisms like SWIFT.
He urged Nigeria to strategically realign its foreign policy to adapt to these changes and strengthen its economic position.
Acknowledging Government Efforts
Despite the challenges, NACCIMA commended the Federal Government, represented by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, and CBN Governor, Mr. Olayemi Cardoso, for their candor in acknowledging Nigeria’s macroeconomic and social challenges.
This acknowledgement, reiterated during the IMF/World Bank Spring Meetings, reflects a commitment to addressing the nation’s pressing issues.
NACCIMA’s call for urgent intervention emphasized the need for collaborative efforts between the government and the private sector to combat poverty, stimulate economic growth, and secure a sustainable future for Nigeria.
What you should know
- Despite modest improvements in poverty rates projected in a few countries, the number of extremely poor people is expected to increase by 90 million between 2022 and 2027.
- This would push the continent’s total from 576 million in 2025 to 589 million in 2027, even as poverty rates may decline slightly in 2026 and 2027.
- Millions of Nigerians also suffer from multidimensional poverty, lacking access to healthcare, education, clean water, electricity, and safe housing.
