Inflation could push 13 million more Nigerians into poverty by 2025 – Report

NAIRAMETRICS

Rising inflation, interest rates, and naira depreciation could push 13 million more Nigerians below the national poverty line by 2025.

This is according to a new report titled “2025 Nigerian Budget and Economic Outlook” by PricewaterhouseCoopers International Limited.

According to the PwC, “Macroeconomic pressure points such as rising inflation, interest rate and naira depreciation may drive additional 13 million people below the national poverty line by 2025.” 

The British agency noted “The number of people living below the national poverty line is projected to increase by about 13 million by 2025” due to the country’s rising inflation and cost of living.

The report projected a significant increase in the number of people living below the poverty line, citing these economic headwinds as major contributors.

As reported by the National Bureau of Statistics, the headline inflation rate in Nigeria is currently at 34.80% in December 2024.

Recent minimum wage increase from N30,000 to N70,000 in Nigeria have had a limited impact on the overall population, affecting only a small percentage of the populace, PwC says.

The majority of Nigerians are employed in the informal sector, such as agriculture, small-scale businesses, and street vending. These sectors are often outside the scope of minimum wage regulations.

“Additionally, the recent increase in minimum wage only covers 4.1% of the population, highlighting the limited impact of this measure on alleviating poverty and providing financial relief to the majority of Nigerians,” PwC noted…