The World Bank has warned that macroeconomic frailties, shocks and uncertainty may hamper Nigeria’s poverty reduction measures pushing many poor people into further deprivation.
In its new report titled, ‘A Better Future for All Nigerians: 2022 Nigeria Poverty Assessment’, the bank said many ‘non-poor’ Nigerians are only one small shock away from falling into poverty.
According to the bank, such shocks can be induced by the issues of climate change or conflict.
The report reads, “Compounding macroeconomic frailties, shocks and uncertainty may blight Nigeria’s progress on poverty reduction; climate change could intensify shocks, further limiting opportunities to spread the proceeds of growth.
“Many non-poor Nigerians are only one small shock away from falling into poverty, while those who are already poor could be pushed into even deeper deprivation.”
It further noted that climate-related shocks, such as floods and droughts can harm agricultural activities, which can disrupt the lives of many Nigerian households.
It said, “Climate-related shocks—such as floods and droughts—are particularly harmful because they threaten the rain-fed agricultural and pastoral activities that are common among households living below or just above the poverty line.
“Uncertainty about when such shocks may hit, combined with a lack of coping or insurance mechanisms, can trap households in poverty by discouraging the adoption of high-risk, high-reward technologies or investment in human and physical capital.
“This problem may currently be getting worse: climate change threatens to make floods and droughts more frequent and more severe, compounding this challenge for poverty reduction in Nigeria. Given the influence of shocks on income generation, it becomes even harder for any growth to percolate to Nigerian households and raise their living standards.”
It added: “Alongside increasing climate shocks, conflict events have proliferated, displacing populations, disrupting markets, and interrupting Nigerians’ livelihoods. Fatal conflict events have become more widespread across Nigeria in the past two decades, especially in the country’s north.
“This corresponds to the onset of the Boko Haram insurgency in 2009 in Nigeria’s North-East zone, the rise of criminal gangs and banditry in the North West, and growing political violence and vigilante groups in the south.”