Nigeria must translate economic improvements into lower food prices

Titled ‘From Policy to People: Bringing the Reform Gains Home’, the report notes progress in economic growth, domestic revenue mobilisation, monetary policy and external balances – while emphasising ongoing challenges such as high food inflation, widespread poverty and structural barriers that constrain inclusive growth. 

According to the World Bank, Nigeria’s economy expanded by 3.9% year-on-year in the first half of 2025, up from 3.5% in the same period of 2024. Growth was driven by strong performance in services and non-oil industries, alongside improvements in oil production and agriculture. 

However, the report cautions that macro-economic gains have yet to translate into tangible improvements in people’s lives. Many households continue to face hardship, with poverty and food insecurity remaining high.  

Cost of a basic food basket rises fivefold in five years 

Food inflation remains a major concern: poor households – who spend up to 70% of their income on food – have seen the cost of a basic food basket rise fivefold between 2019 and 2024.  

The report notes that while current reforms are addressing long-standing policy distortions, sustained progress towards better livelihoods will depend on continued efforts to reduce inflation, foster inclusive growth, strengthen public services, and expand support for the most vulnerable. 

“The Nigerian government has taken bold steps to stabilise the economy, and these efforts are beginning to yield results,” says Mathew Verghis, World Bank Country Director for Nigeria.  

“But macro-economic stability alone is not enough. The true measure of success will be how these reforms improve the daily lives of Nigerians – especially the poor and vulnerable.” 

The World Bank says tackling food inflation must be a priority as food prices are the “biggest tax on the poor.”