January 07, (THEWILL) — Global professional service firm, PricewaterhouseCoopers, PwC, has said Nigeria’s poverty rate may rise sharply to 62 percent by 2026, with about 141 million people expected to be living below the poverty line.
The projection is contained in PwC’s Nigeria Economic Outlook 2026, titled “Turning macroeconomic stability into sustainable growth,” made available to THEWILL.
The report notes that despite recent policy actions aimed at restoring macroeconomic stability, weak growth in real incomes and persistently high living costs are likely to push more households into poverty over the next two years.
The firm estimates that most Nigerians will struggle to record income gains strong enough to offset rising prices in the near term, particularly as inflation continues to erode purchasing power.
“Poverty is projected to rise to 62 per cent (141 million people) by 2026, reflecting weak real income growth and lingering inflation effects,” PwC noted.
While inflation is expected to ease gradually, the firm warned that the underlying cost structure of the economy would limit meaningful affordability gains for households.
The firm said consumption patterns among low-income households are worsening the impact of rising prices.
Food accounts for up to 70 per cent of total consumption among poorer Nigerians, making them especially vulnerable to increases in food prices.
With food inflation remaining elevated, these households are disproportionately exposed to price shocks.
PwC added that even if headline inflation moderates slightly, high energy costs, logistics expenses, and exchange rate pass-through effects will continue to keep the prices of food and essential goods high.
The report warned that rising poverty levels pose significant risks to Nigeria’s economic stability and growth prospects.
A growing share of the population struggling to meet basic needs could weaken domestic consumption, constrain productivity growth, and place additional pressure on public finances.
The World Bank’s Nigeria Development Update shares a similar view. The lender noted that the absolute number of people living in poverty has increased sharply, from about 81 million in 2019 to roughly 139 million in 2025, meaning nearly 62 per cent of the population now lives below the poverty line.
Both PwC and the World Bank warn that rising poverty could also weaken domestic consumption, limit productivity growth, and place additional pressure on public finances.
They advise that the country should pursue targeted interventions such as job creation and productivity improvements and social protection programmes towards reducing poverty levels in Nigeria will remain a major challenge.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
