Poverty levels in Nigeria are projected to deteriorate sharply, with as many as 141 million Nigerians—about 62% of the population—expected to be living in poverty by 2026.
This is according to PwC’s Nigeria Economic Outlook 2026 titled “Turning macroeconomic stability into sustainable growth”.
The report shows that despite recent policy adjustments aimed at economic stabilisation, weak real income growth and elevated living costs are likely to push more households into poverty over the next two years.
What the report is saying
PwC estimates that Nigeria’s poverty rate will rise to 62% by 2026, reflecting the combined effects of sluggish income growth and persistent inflationary pressures.
According to the report, most Nigerians are unlikely to experience income increases that meaningfully offset rising costs, especially in the short term.
“Poverty is projected to rise to 62% (141 million people) by 2026, reflecting weak real income growth and lingering inflation effects,” PwC noted.
While inflation may gradually moderate, PwC notes that the underlying cost structure of the economy suggests that affordability gains for households will remain limited.
A major contributor to worsening poverty, PwC explains, is the consumption pattern of low-income households.
Food accounts for up to 70% of total consumption among poorer Nigerians, leaving them highly exposed to food price increases.
With food inflation remaining elevated, these households are disproportionately affected by price shocks.
The firm adds that even if headline inflation eases slightly, energy costs, logistics expenses, and exchange rate pass-through effects will continue to keep food and essential goods prices high.
Why this matters
Rising poverty levels pose significant risks to Nigeria’s economic stability and growth prospects.
A larger share of the population struggling to meet basic needs could weaken domestic consumption, limit productivity gains, and strain public finances.
Without strong job creation, productivity improvements, and effective social protection, PwC cautions that efforts to reduce poverty may remain out of reach.
What you should know
Also, in 2023, PwC projected an increase in the higher cost of doing business and lower revenue for Nigerian businesses following the impact of recent economic reforms by the government.
Prof. Nentawe Yilwatda, then Minister of Humanitarian Affairs and Poverty Reduction announced the federal government’s plan to distribute N75,000 cash transfers to an estimated 70 million ‘poorest of the poor’ Nigerians by 2025.
PwC recommends a multi-pronged response, including sustained macroeconomic stability, food supply reforms, and increased investment in agriculture and logistics.
