Poverty Persists Despite Nigeria’s Economic Recovery

A new report by Quartus Economics has shown that although Nigeria’s economy has begun to recover, poverty remains a major challenge for millions of citizens.

According to the report, between 2014 and 2023, Nigeria’s economic growth slowed significantly due to internal policy inconsistencies, structural weaknesses, and global economic shocks.

During this period, the Central Bank of Nigeria (CBN) maintained multiple exchange rates and imposed tight foreign currency controls, discouraging foreign direct investment (FDI) and weakening import-dependent sectors.

The report also cited insecurity, including Boko Haram insurgency, banditry, and farmer-herder conflicts, as major disruptors of agricultural production. In addition, widespread oil theft and pipeline vandalism further reduced Nigeria’s crude output below OPEC targets, deepening the country’s economic troubles.

Nigeria slipped into recession in 2020, following the global collapse in oil prices during the COVID-19 pandemic.

In 2023, President Bola Ahmed Tinubu’s decision to remove fuel subsidies was widely criticized for triggering inflation. However, Quartus Economics described the move as a “bold but necessary step” toward long-term economic recovery.

> “By May 2023, the Nigerian economy was in critical condition, investment flows had dried up, and debt servicing consumed over 95% of federal revenues. The government had no choice but to end unsustainable policies,” the report stated.


The report praised the administration for confronting “decades-long economic drainpipes” such as the fuel subsidy and official exchange rate subsidy, adding that while the petrol subsidy was declared “gone” in May 2023, it was gradually phased out over 12 to 15 months.

By 2024, the report noted, the economy began showing signs of recovery.

> “After years of strain and repeated shocks, 2024 marked Nigeria’s quiet return to stability. Growth resumed, production rose, and employment across industries began to recover,” it said.



However, Quartus Economics warned that poverty continues to deepen despite economic growth, citing “pre-existing conditions” that will take decades to reverse.

> “Between 2014 and 2023, Nigeria’s economy shrank by more than $200 billion in U.S. dollar terms, while its population grew by over 40 million. The resulting decline in living standards has pushed more than 65 million Nigerians below the poverty line,” the report concluded.



Despite encouraging signs of recovery, the report emphasized that Nigeria’s long-term prosperity will depend on sustained reforms, stronger institutions, and inclusive policies that prioritize job creation and poverty reduction.