The Nigeria Economic Outlook 2026 by PwC has projected that poverty levels in Nigeria will drop significantly, with as many as 141 million Nigerians or about 62 per cent of the population, expected to be living in poverty by 2026.
According to the report titled “Turning macroeconomic stability into sustainable growth,” despite recent policy adjustments aimed at economic stabilisation, weak real income growth and elevated living costs are likely to push more households into poverty over the next two years.
PwC estimated that Nigeria’s poverty rate will rise to 62 per cent by 2026, reflecting the combined effects of sluggish income growth and persistent inflationary pressures.
The report noted that most Nigerians are unlikely to experience income increases that meaningfully offset rising costs, especially in the short term.
“Poverty is projected to rise to 62% (141 million people) by 2026, reflecting weak real income growth and lingering inflation effects,” PwC noted.
While inflation may gradually moderate, PwC noted that the underlying cost structure of the economy suggests that affordability gains for households will remain limited.
PwC identified the consumption pattern of low-income households as a major contributor to worsening poverty.
Food accounts for up to 70 per cent of total consumption among poorer Nigerians, leaving them highly exposed to food price increases.
With food inflation remaining elevated, these households are disproportionately affected by price shocks.
The report noted that even if headline inflation eases slightly, energy costs, logistics expenses, and exchange rate pass-through effects will continue to keep food and essential goods prices high.
In 2025, PwC reported that rising inflation, interest rates, and naira depreciation could push 13 million more Nigerians below the national poverty line.
