With over 133 million people living in multidimensional poverty, Nigeria is facing a deepening poverty and inequality crisis. Despite its vast resources, natural and physical including over 110 million labor force, the number of households becoming poor is increasing everyday. Structural challenges, high cost of governance, low public investment and economic imbalances continue to trap millions in deprivation, threatening the country’s long-term stability and growth prospects.

Critical drivers include:
1. Low Public Investment in Human Capital
• Nigeria spends only $220 per person annually), one of the lowest globally (Hernandez et al., 2022).
• Chronic underfunding of education, healthcare, and social protection limiting access to quality services and economic mobility.
2. Unemployment and Poor Remuneration
• Despite a 4.3% official unemployment rate, 93% of employed Nigerian’s are in informal employment.
• Lawmakers earn an average of N174 million annually, while many workers earn less than N1 million per year (Oxfam, 2024).
• Skilled workers, especially in healthcare, emigrate due to poor conditions, leaving Nigerian with a density of 1.83 health workers per 1,000 people—below the WHO minimum of 4.45.
3. Food Insecurity and Malnutrition
• Over 39 million Nigerians face severe food insecurity, with 73.9% experiencing moderate to severe hunger (FAO, 2024).
• Rising food prices and inflation worsen nutrition, causing 45% of child deaths and affecting 2 million children (UNICEF, 2023).
• 7% of women of childbearing age are malnourished, impacting their ability to work and provide for their families
Key recommendations for government 
1. Increase Public Investment in Human Capital –Allocate at least 15% of the national budget to education, improve healthcare spending, and strengthen social protection programs.
2. Strengthen Public-Private Partnerships for Job Creation – Expand vocational training (e.g., NISDP, N-SKILL, T-MAX) and implement targeted tax incentives for businesses that create jobs.
3. Reform Wage Policies – Adjust wages to reflect inflation trends, enforce minimum wage laws nationwide, and improve labor rights.
4. Scale Up Social Protection and Agricultural Investment – Restore NSIP and revive agricultural financing programs to improve food security.

Nigeria is Africa’s fourth-largest economy, with a Gross Domestic Product (GDP) of $362.8 billion . It is  also the continent’s largest crude oil producer, holding proven reserves of 37 billion barrels and a daily production capacity of 1.5 million barrels per day . Despite these abundant natural resources, a favorable climate for agriculture, 36.8 million hectares of arable land and a large and growing labor force of over 110 million, the country faces an alarming paradox: over half of its population lives in poverty, and the situation is worsening with economic inequality reaching extreme levels.

According to the NBS Multidimensional Poverty Index (MPI) Report (2022) 133 million Nigerians are multidimensionally poor, living below the $2.15 international poverty line. Poverty in Nigeria is not just about income, it is a complex crisis that is being driven by lack of access to quality education, health care services and low living standards. Figure 1 and 2 below illustrates how these factors contribute to the persistence of poverty in Nigeria.
Table 1: Inequality Outlook
 

Source: World Bank (2023)

The consequences of this rising poverty and inequality are severe and far reaching. Economic hardship has fueled surge in crime, insecurity, banditry, and theft, particularly in states like Sokoto and Zamfara where poverty rates exceed 90% and 75% respectively. Several studies have confirmed that rising poverty and inequality in Nigeria are directly linked to growing insecurity, theft and violent conflicts (Ajodo-Adebanjoko & Walter, 2014; Okolie et al, 2019 and Kudaisi & Ojeyinka, 2023).

Thus, the pressing question is:  What specific policy measures can effectively reduce multidimensional poverty and inequality in Nigeria to ensure sustainable economic growth and stability in Nigeria?

Key Issues Driving Poverty and Inequality

LOW PUBLIC INVESTMENT IN HUMAN CAPITAL

Nigeria’s chronic underinvestment in human capital is one of the major drivers of this issues in the country. Despite recent increases in national budgets, spending on key sectors remains critically low and continues to decline in real terms. In 2022, the World Bank reported that Nigeria spends only $220 per person annually which is approximately 12 % of the GDP. As a result Nigeria was ranked 167th out of 174 countries in human capital development (Hernandez et al., 2022)

Figure 3: Public Spending by Sector (2024 vs 2025 Budget)

Source: Budget Office of the Federation, 2025

Even though the 2025 national budget has grown by 49.9% to N54.9 trillion compared to N27.5 trillion in 2024, spending on key sectors has declined as a share of total public spending. Education, for example, receives only 7.12% allocation, far below UNESCO’s recommended 15% and the same decline is seen across other key sectors. This chronic underfunding limits the people’s ability to access quality education, health care, and social benefits, reducing opportunities for upward mobility and entrenching intergenerational poverty.

UNEMPLOYMENT AND POOR REMUNERATION FOR WORKERS

Although unemployment in Nigeria was reported to have decline from 5.3% to 4.3% in Q2 2024, this figure does not reflect the true state of joblessness. Informal unemployment remains incredibly high at 93%. This is concerning as informal unemployment is often defined as including shadow and even illegal economic activities. One of the biggest contributors to this crisis is the poor wages. Salaries paid to workers have failed to keep pace with rising inflation, leaving many workers earning far below a living wage

Source: World Bank

Only 15 % Nigerians hold paid wage jobs or an apprenticeship and less than half of the wage workers have any written contracts, meaning majority of them receive no additional benefits and are job insecure (Jonathan & Pape 2024).

After several agitation and strikes by the labor unions the minimum wage was increased from N30,000 to N70,000. However, many states are yet to fully implement this, and some workers still earn below this threshold despite working full-time. In stark contrast, lawmakers according to Oxfam earn disproportionately high salaries and allowances with a Nigerian Senator taking home an average of N174 million annually, while many workers from whose taxes they are being funded earn less than N1 million in a year

These extreme wage disparities, rising cost of living and flaunt of publicly amassed wealth by the politicians have triggered anger and frustration in the citizens resulting in protest and strike actions. This has also fueled the mass exodus of skilled workers from the country, further dampening potential growth prospects. In 2022 over 16,000 skilled worker visas were issued to Nigerians, majority of whom were medical doctors, nurses and management consultants, seeking employment opportunities in the United Kingdom. This brain drain has worsened critical sectors like healthcare, where Nigeria has only a density of 1.83 skilled health workers per 1,000 people, far below WHO’s minimum recommendation of 4.45 (Olatunji et, al., 2024)

3. Food Insecurity and Malnutrition

Food insecurity is both a cause and effect of poverty and inequality in Nigeria. With over 39 million Nigerians classified as severely food insecure and 73.9% of the population facing moderate to severe food insecurity, access and affordability of nutritious and adequate food has become a privilege rather than a basic right.

Rising food prices and inflation have made nutritious food unaffordable for millions of low-income households, forcing families into consuming less nutritious diets. The 2024 FAO state of food security report highlighted that over 79% of Nigerians cannot afford a healthy diet. This has deepened the cycle of poverty and inequality, particularly among children and women.

Policy Recommendations

1. Increase Public Investment in Human Capital

Public investment in human capital is essential for reducing poverty and inequality. However, Nigeria’s public spending especially in critical human development sectors are at a new low, falling short of global standards. In a time of rising poverty and economic hardship, underfunding these sectors only increases the poverty rate and worsens long-term inequality. To close this gap, the government must cut the cost of governance and increase budgetary allocations, ensuring education funding reaches at least the 15% UNESCO’s recommendation. The same should be done for healthcare and other key sectors. Expanding access quality education and healthcare are proven drivers of economic growth. Studies have shown that every $1 spent on education can generate up to $15 in economic returns (UNESCO, 2012). Furthermore, a “living wage” that reflects the current economic realities of workers should be implement as this would enhance overall productivity and economic growth.

2. Strengthen Public-Private Partnerships for Job Creation

The government has been making effort to provide job opportunities in the public sector recently, but this has failed to meet up with the pace of the growing population. A better approach to addressing this issue is for the government to work closely with the private industries through Public-Private Partnerships (PPPs) to expand job opportunities. This should include scaling up the vocational training programs, such as the National Industrial Skills Development Programme (NISDP) and T-MAX, to equip people with skills that better align with job market demand, reducing the skill mismatch problem. Additionally, as the country embarks on tax reforms, to encourage businesses to hire more workers, tax incentives should be structured to reward businesses that demonstrate measurable job creation. This could include tax credits for firms investing in human capital development, tax breaks for high employment sectors like manufacturing, and agriculture, and financial support for startups driving innovations. These steps would make it easier for businesses to grow and hire more workers. 

3. Scale Up Social Protection Programs and Agricultural Investment

Currently, the percentage of funding to social protection is 1.08% of public spending, which is too low considering the rising poverty rates in Nigeria. The social protection programs are meant to reduce poverty and inequality, but often they fail to reach the people who need them most due to inefficiency of the system and corruption. The recent suspension of the National Social Investment Program (NSIP) in has left millions of vulnerable Nigerians without any support, which has resulted in worsened poverty. The government should unfreeze the NSIP accounts, strengthen oversight and ensure that funds are used transparently to prevent further mismanagement. Furthermore, due to the increasing percentage of the poor people needing assistance, funding to this sector which should also be increased. As food insecurity continues to increase, programs like the defunct Anchor Borrowers Programme which created over 250,000 direct jobs and 1.25m indirect jobs has showed that well-structured agricultural financing can make a great impact.[1] An improved version of the ABP should be introduced to provide affordable credit, farming inputs and market access to smallholder farmers. This will not only address the lingering food insecurity in the country but also create jobs and improve rural livelihood. 

This briefing shows how poverty and inequality crisis is deepening in Nigeria with over 113 million people living in extreme poverty. It also provided a critical perspective on the key factors underlying the issue of rising poverty and inequality as millions of households have been struggling to afford basic needs and nutritious food. To address these issues, the briefing proposes some policy recommendations, including increased investment in human capital, job creation through PPC, wage adjustment and enhanced social safety nets. If well implemented these measures hold particular promise that would lift millions out of poverty and also lay the foundation for a long-term economic progress. But achieving these outcomes requires intentional and concerted efforts on different fronts and players. The government must take the lead by adopting transparent and targeted polices that are aimed at addressing the widespread poverty and inequality while the private sector plays the supporting role of workforce development and job creation.

Every decade, the United Nations hosts a financing for development, or FfD, conference, offering the world a chance to commit to a shared vision for international development. The next conference, FfD4, will take place in Seville, Spain, at the end of June 2025. This gathering comes at a critical time, as the global economy faces headwinds, multilateralism weakens, and conflicts escalate. It presents an opportunity to think bigger and make radical changes to create sustainable growth and economic transformation for Africa and its global partners.

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Authors: Rob Floyd, Mma Amara Ekeruche, Martin Kessler & Beverly Musili 

Public procurement is the system through which governments acquire goods, services, and infrastructure to support public welfare and enhance operations. It plays a crucial role in resource allocation. However, procurement systems are often susceptible to fraud and inefficiency. In Nigeria and across Africa, research identifies four key areas that require sustained reform to improve procurement systems and outcomes:

1)Increasing the inclusion of women-owned businesses in public procurement

2)Assessing technical capacity to ensure the effectiveness of procurement processes

3)Enhancing accountability by increasing transparency and making procurement data more accessible

4)Leveraging behavioral science to drive ethical outcomes in procurement

Through a collaborative study with the Africa Growth Initiative (AGI) at the Brookings Institution in Washington DC, USA, the University of Stellenbosch in Cape Town, South Africa, CSEA has been examining procurement practices, with the aim of providing new and innovative solutions to reforming procurement practices and mitigate corrupt losses of procurement funds—both in Nigeria and across the African continent.

We recently published some research papers and training manual, via Brookings.

Transparency in the procurement process in Nigeria

Governments allocate public funds toward social goods and services as an essential component of provision of public goods and economic planning. This is facilitated through public procurement, which is the process through which the government acquires works, goods, and services from the private sector. The estimate among OECD countries shows that public procurement accounts for a 12.9% share of the Gross Domestic Product (GDP) in 2021. In developing countries, public procurement was estimated to be around 30% of the GDP and represented more than 30% of total government spending before the outbreak of the COVID-19 pandemic. In 2016, the annual expenditure on procurement in Nigeria was estimated to range from 10% to 25% of GDP. READ MORE 

Imperative of human resources in effective public procurement: Challenges and prospects in Nigeria

Public procurement is an important component of governance, as it comprises purchases by a government to ensure quality and efficient public service delivery. The public procurement process requires technical competence in various areas, including financial, legal, administrative, sector-specific knowledge, and an understanding of local and global supply chains from where the public goods and services will be sourced. In this regard, the human resource system and skill development programs, often referred to as human development, are part of extensive public procurement reforms. READ MORE

Reforming public procurement in Nigeria: What needs to change

Nigeria faces significant challenges with corruption, as illustrated by the 2023 Corruption Perceptions Index. Public procurement is particularly vulnerable, and is one of the main areas through which corruption manifests in the public sector. Addressing corruption in public procurement is therefore important for a number of reasons. First, procurement is a lever for development that helps to ensure projects deliver development benefits to beneficiaries. It is vital to promoting sustainability and is also crucial for the effective utilization of public funds. READ MORE

Public procurement and good governance in Nigeria: Training manual

Public procurement governs the state’s acquisition of goods and services needed to fulfill its public functions through private transactions with commercial suppliers. The training presumes that participants have a basic understanding of the public procurement system, but also includes a module that is an introduction to public procurement in Nigeria. Each module is designed to provide practical information on the topics under study and includes reading materials, exercises, and additional resources for further learning. READ MORE

Despite international frameworks and regional commitments to combating Gender-based violence (GBV), millions of women across the world, particularly in Africa continue to face high prevalence of violence. This violation of  fundamental human rights not only harms individuals but also impedes progress towards sustainable development, prosperity, and equality. In commemoration of the International Day for the Elimination of Violence against Women, this article emphasises the urgent need to address gender-based violence in Africa. 

Background

Gender-based violence (GBV) is one of the most pervasive human rights violations worldwide, affecting individuals in every country and across all segments of society. It entails any harm or threat of harm inflicted on a person due to male-female power imbalances entrenched within a society (UNICEF, 2024). GBV can be physical, sexual, mental, or economic in nature. Sexual violence, intimate partner violence, female genital mutilation, child marriage, sex trafficking and femicide are all forms of gender-based violence. While men and boys can also be victims of GBV,  women and girls experience this violence at a disproportionately higher rate. Globally, an estimated 736 million women (nearly one in three) have faced  physical and/or sexual violence at least once in their lifetime. The prevalence of GBV  has intensified in different settings, such as the workplace and online spaces, and has been further exacerbated by post-pandemic effects, climate change, and conflicts. Survivors of GBV often suffer from related consequences including severe physical injuries, unwanted pregnancies, exposure to HIV or other sexually transmitted infections, post-traumatic stress disorder, anxiety, and depression. 

Although the international community has made strides in creating awareness and addressing violence against women, as outlined in the Maputo Protocol, Beijing Declaration, and the Sustainable Development Goals (SDG 5.2), progress remains uneven, especially in regions grappling with poverty, political instability, and limited institutional capacity.

Key Statistics on Violence against Women and Girls in Africa

*Gender-based violence in Africa remains pervasive and multifaceted, manifesting as physical, sexual, psychological, and economic violence. 

*Approximately 42% of women in Eastern and Southern Africa, and 37% of women in Sub-Saharan Africa experience physical and/or sexual violence in their lifetime. These figures are well above the global average of 30%.

*Africa has some of the highest child marriage rates, with 4 out of 10 girls married before the age of 18, especially in countries like Niger (76%) and the Central African Republic (68%).

*Africa accounts for more than 50% of all cases of Female Genital Mutilation and Cutting (FGM/C), which affects over 230 million women and girls worldwide

*In 2022, Africa recorded the largest number of Femicide with approximately 20,000 women and girls killed by their intimate partners or other family members. This is nearly half of the global total of approximately 48,800. 

*Gender-based violence costs African countries an estimated 2% to 4% of GDP annually primarily due to  lost productivity and health-related expenses. For instance, South Africa loses $2 billion annually as a  result of  GBV-related costs.

Challenges in Addressing Gender-based Violence (GBV)

Significant barriers still persist, despite various national and regional policies aimed at reducing GBV in Africa. Some of these barriers include: 

Cultural Norms and Traditional Beliefs: In many African communities, particularly in rural areas, deeply ingrained  gender roles often justify or normalise violence against women, especially within marriage or intimate relationships. For instance, studies show that about 51% of African women believe that a husband is justified in beating his wife under certain circumstances, such as infidelity or neglect of household duties. These beliefs perpetuate  abuse and make it difficult for women to seek help.

Shame and Stigmatization: Victims of gender-based violence, particularly sexual violence, frequently face shame and ostracization when they report abuse. This stigma is intensified in  communities where victims are seen as complicit in the violence, discouraging women from speaking out or seeking justice. As a result, many cases of GBV are often underreported, complicating efforts to measure and address the problem effectively.

Conflict and Displacement: Armed conflicts in Africa, especially in regions like the Sahel, Central African Republic, eastern Democratic Republic of the Congo, and northern Nigeria have led to alarming rates of sexual violence and exploitation against women and girls. In these  conflict zones, women are increasingly vulnerable to abuse and face high risks of violence. Displacement driven by conflict or environmental crises, place women and girls in precarious situations where they may lack basic protections. For instance, internally displaced persons (IDP) camps and refugee settlements often lack adequate security, making women targets of sexual violence and exploitation.

Limited Support Services and Inadequate Funding: Many African countries struggle with  budget constraints that limit access to essential support services for GBV survivors, such as safe shelters, legal aid, and psychological counselling. In addition, many GBV initiatives in Africa are funded by international donors rather than national governments, leading to inconsistent and sometimes unsustainable interventions. Without stable domestic funding, these programs risk discontinuation, and efforts to establish a permanent, accessible support system for survivors remain limited. As a result, the reach and effectiveness  of GBV interventions are undermined, particularly in fragile and conflict-prone regions.

Weak Legal and Policy Framework: While many African nations have laws that prohibit GBV, significant gaps still exist. For instance, marital rape is still not universally criminalized in several countries, limiting legal recourse for many women. Even in countries with comprehensive legal frameworks, enforcement is often weak, allowing perpetrators to remain unaccountable. In addition, limited resources and inadequate training for law enforcement officials and judicial staff often prevent the effective implementation of existing laws. Some law enforcement representatives  lack the sensitivity to handle GBV cases properly, and survivors often face judgement, victim-blaming, or even retaliation when they  come forward. For instance, law enforcement officers in some regions may pressure survivors to reconcile with their abusers rather than pursue legal action, which further perpetuates cycles of abuse.

Policy Recommendations

To significantly mitigate violence against African women and girls, a multisectoral approach that brings together governments, civil society, and international organisations is essential. Prioritising women’s rights across the continent can help accelerate progress toward sustainable development and create a safe and more inclusive society that upholds human dignity. Some recommended strategies to achieve this include:

Strengthen Legal Frameworks and Enforcement: African Governments should align national laws with international and regional protocols on GBV. Traditional norms and beliefs that do not support basic human rights should not be upheld. Efforts should focus on closing legal gaps, particularly regarding marital rape and domestic violence. Additionally, governments should invest in more training and capacity-building programs for law enforcement and judicial officials to ensure the effective, fair and prompt enforcement of GBV laws.

Invest in Prevention and Support Services: African Governments should prioritise increased funding allocation for essential support services such as safe shelters, psychological counselling, and medical services for GBV survivors. Prevention programs to create awareness about GBV and reform harmful societal norms are crucial  to fostering positive social change. These programs should focus on promoting respect for women and girls, and enhancing gender equality. To be most effective, prevention and awareness initiatives  should be integrated within schools, workplaces, and community groups. 

Promote Education and Economic Empowerment for Women: Expanding access to education for girls, along with vocational training, can help reduce vulnerabilities to early marriage and economic dependency – two common precursors to violence. Having women and girls access their right to quality education can increase their independence, freedom, and employability. Furthermore, economic support programs such as  micro-loans and vocational training, should be developed for survivors to help them rebuild their lives and achieve financial independence. 

Enhance Data Collection and Monitoring: Reliable, disaggregated data on gender-based violence is crucial for understanding the full scope of the problem and tailoring responses. Enhanced data systems will enable African nations to measure progress, identify high-risk groups, and assess intervention effectiveness. Thus, governments should strengthen data collection systems to capture accurate data on GBV prevalence, types, and outcomes. This can be achieved by establishing clear protocols for reporting GBV incidents to ensure that data is collected uniformly by trained personnel. Also, a centralised and secured national database to track GBV incidents should be developed, allowing for systematic collection and analysis. This could include cases reported to law enforcement authorities, healthcare facilities, and support services, enabling a comprehensive view of GBV trends across sectors.

Expand Partnerships with Civil Society Organizations and NGOs: Governments should collaborate with NGOs, especially those with expertise in GBV, to design and implement community-based interventions. Also, funding should be allocated to local NGOs working on GBV prevention and support, recognizing their role in bridging service gaps. Stable long-term funding will empower these organisations to plan and execute interventions effectively. 

Image:Sandro Bozzolo

Nigeria faces significant challenges with corruption, as illustrated by the 2023 Corruption Perceptions Index. Public procurement is particularly vulnerable, and is one of the main areas through which corruption manifests in the public sector. Addressing corruption in public procurement is therefore important for a number of reasons. First, procurement is a lever for development that helps to ensure projects deliver development benefits to beneficiaries. It is vital to promoting sustainability and is also crucial for the effective utilization of public funds. Furthermore, procurement accounts for up to 50% of government expenditures in sub-Saharan Africa, making it essential from a policy implementation and financial management perspective.

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Authors- Sope Williams and Adedeji Adeniran