World Bank Warns: Nigeria’s Economic Growth Threatened by Rising Food Prices
Temitope Adebayo
The World Bank has warned that although Nigeria’s economy is showing signs of recovery, rising food prices and soaring inflation are putting intense pressure on millions of Nigerians, threatening to undermine the country’s fragile growth.
🔹 Economic Growth Outpaced by Inflation
In its latest Nigeria Development Update, the World Bank said GDP growth has improved slightly in 2025 due to higher oil output and better performance in the service and agricultural sectors.
However, persistent inflation—especially in food prices—continues to erode household incomes and increase poverty levels.
“Nigeria’s economy is recovering, but the cost of living crisis remains severe,” the report stated. “Without urgent action to stabilize prices, more families could slip into poverty.”
The Bank revealed that the prices of basic staples such as rice, beans, yam, and bread have risen by over 30 percent in the past year, widening the gap between income and living costs for average Nigerians.
🔹 Food Inflation and Poverty on the Rise
According to the report, Nigeria’s food inflation rate, which remains among the highest in Sub-Saharan Africa, is being driven by weak supply chains, insecurity in farming areas, and rising fuel and transport costs.
“Food prices are climbing faster than wages,” said economist Dr. Chika Udeh. “Even though GDP is growing, many Nigerians are worse off today than they were a year ago.”
The World Bank emphasized that while reforms like fuel subsidy removal and exchange rate unification could boost growth in the long term, short-term social protection and agricultural support are critical to prevent widespread hunger.
🔹 World Bank Recommends Policy Reforms
The report urged the Nigerian government to strengthen:
- Monetary policy coordination to curb inflation
- Support for smallholder farmers to boost food production
- Transparency in public spending
- Social welfare programs to cushion the poor
It also called for stronger collaboration between federal and state governments to make economic reforms more effective and inclusive.
🔹 Looking Ahead
As of September 2025, Nigeria’s inflation rate remains above 27 percent, one of the highest in decades. While the World Bank forecasts modest growth ahead, it warns that economic recovery will remain fragile unless price stability and job creation improve.
The message from the World Bank is clear: growth without affordability means little to the average Nigerian.
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