Minister blames low economic returns for poverty

A file copy of Minister for Budget and Economic Planning, Abubakar Bagudu.

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The Minister of Budget and Economic Planning, Senator Abubakar Bagudu, has said most Nigerians remain trapped in poverty because their economic returns are limited.

This was according to a press statement issued by the ministry on Wednesday following the visit of the World Bank Regional Manager for Social Protection and Labour for West and Central Africa, Mr Robert Chase, to the minister in Abuja.

According to the statement, the Federal Government and the World Bank reaffirmed their commitment to expanding social protection systems and widening economic opportunities for poor and vulnerable citizens.

Bagudu expressed appreciation for the bank’s continuous support, noting that Nigeria’s macroeconomic reforms and social protection programmes had benefited from the partnership.

He also welcomed the new Permanent Secretary of the ministry, Dr Deborah Odoh, to her first formal engagement with the bank and commended her expertise in social policy and reform implementation.

The minister said the Nigerian Constitution mandates all tiers of government to pursue shared national objectives, including social welfare and inclusive development, adding that this legal framework guides the ministry’s coordination of social protection policies across government levels.

Bagudu stressed the importance of coherence in social enhancement programmes such as NG-CARES, the Nigeria for Women Project, and the HOPE Agenda, saying they should operate in a harmonised ecosystem. He advocated functional ward-level governance structures to prevent overlaps, resolve conflicts, and strengthen community participation.

Speaking on poverty, the minister said that although Nigerians are hardworking, they are trapped in poverty because their economic returns are limited. The statement read, “Speaking on poverty prevalence, the minister explained that although most Nigerians are hardworking, they are trapped in poverty because their economic returns are limited.

“He, therefore, emphasised the urgency of scaling interventions that support livelihoods, enhance resilience, and expand opportunities, particularly amidst internal displacement and multidimensional poverty challenges.”

The statement also quoted the minister, saying, “Mr President has challenged us to translate these reforms into measurable improvements in people’s lives. Our goal is to lift millions out of poverty by 2030 through coordinated programs, strengthened efficiency, and expanded financing.”

Bagudu thanked the World Bank delegation for its continued commitment to Nigeria’s development and said the renewed engagement would create more opportunities for inclusive growth.

Welcoming the delegation, Odoh described the World Bank as a dependable development partner and noted its impact on social protection and macroeconomic reforms across the country.

She assured Chase of the Federal Government’s commitment to deploying all available resources to achieve President Bola Tinubu’s vision for a more inclusive and resilient nation.

Chase commended Nigeria’s leadership and innovation in delivering social protection programmes, describing them as expansive and a model across the continent. He highlighted the national ownership of NG-CARES and said the World Bank’s $750m support had been matched by over $2.2bn in state-level investments.

He explained that the first phase of NG-CARES would conclude in 2025, with additional financing expected to take effect by December 9 and be fully launched in January 2026 to ensure seamless implementation.

According to Chase, the next phase will expand cash transfers, identification systems, and livelihood support in line with the World Bank’s Country Partnership Framework for Nigeria.

In July 2024, The PUNCH reported that the Federal Government released over N438bn in reimbursement to 34 states and the Federal Capital Territory, under the Nigeria Community Action for Resilience and Economic Stimulus programme.

Zamfara, Nasarawa, and Plateau states emerged as the first three earners with N49bn, N27bn, and N26bn, respectively.

In October 2025, the World Bank expressed concern that despite Nigeria’s recent economic stabilisation efforts, about 139 million citizens are now living in poverty, warning that the country risks losing reform gains if it fails to translate them into tangible improvements in people’s welfare.

The World Bank Country Director for Nigeria, Mathew Verghis, disclosed this in Abuja at the launch of the October 2025 Nigeria Development Update titled “From Policy to People: Bringing the Reform Gains Home.”

“Despite these stabilisation gains, many households are still struggling with eroded purchasing power. Poverty, which began to rise in 2019 due to policy missteps and external shocks such as COVID-19, has continued to increase even after the reforms. In 2025, we estimate that 139 million Nigerians live in poverty,” Verghis said.

The new figure indicates a sharp increase from 129 million recorded in April 2025 and 87 million in 2023, reflecting the deepening hardship among households despite ongoing economic reforms.

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