About seven million Nigerians have been pushed below the poverty line in 2020 due to the rapid rise in prices of commodities.
The international financial institution said food prices accounted for over 60% of the total increase in inflation, with the rise in prices severely impacting Nigerian households.
The bank stated this in a press statement titled, “Critical reforms needed to reduce inflation and accelerate the recovery, says new World Bank report,” and released by the World Bank’s Senior External Affairs Officer of Nigeria, Mansir Nasir.
The press statement was released in line with the latest World Bank Nigeria Development Update and acknowledged that the Federal Government “took measures to protect the economy against a much deeper recession” but it was recommended that certain policies should be set for a strong recovery.”
“The NDU, titled ‘Resilience through Reforms,’ notes that in 2020 the Nigerian economy experienced a shallower contraction of -1.8% than had been projected at the beginning of the pandemic (-3.2%),” the statement read.
“Although the economy started to grow again, prices are increasing rapidly, severely impacting Nigerian households. As of April 2021, the inflation rate was the highest in four years. Food prices accounted for over 60% of the total increase in inflation. Rising prices have pushed an estimated 7 million Nigerians below the poverty line in 2020 alone.”
The World Bank Country Director for Nigeria, Shubham Chaudhuri was quoted to have noted that “Nigeria faces interlinked challenges in relation to inflation, limited job opportunities, and insecurity.
“While the government has made efforts to reduce the effect of these by advancing long-delayed policy reforms, it is clear that these reforms will have to be sustained and deepened for Nigeria to realise its development potential,”
Also cited in the statement is the World Bank Lead Economist for Nigeria and co-author of the NDU, Marco Hernandez.
He said: “Given the urgency to reduce inflation amidst the pandemic, a policy consensus and expedite reform implementation on exchange-rate management, monetary policy, trade policy, fiscal policy, and social protection would help save lives, protect livelihoods, and ensure a faster and sustained recovery.”
By Abel Ejikeme