Nigeria’s economic landscape is entering 2026 at a critical crossroads, defined by a stark contrast between improving macroeconomic indicators and a deepening humanitarian crisis. A new report by PricewaterhouseCoopers (PwC) projects that 141 million people—roughly 62% of the population—will live in poverty this year, even as the nation's Gross Domestic Product (GDP) is expected to expand by 4.49%.
The report, titled "Turning Macroeconomic Stability into Sustainable Growth", warns that recent policy adjustments aimed at stabilising the naira and cooling inflation have yet to reach the average household. While the government has successfully moderated headline inflation toward a projected 12.94%, the "consumer dilemma" remains acute. Weak real income growth and high living costs continue to outpace the modest gains made in the broader economy.
“Poverty is projected to rise to 62% by 2026, reflecting weak real income growth and lingering inflation effects,” PwC stated in its analysis. The firm highlighted that for the country's most vulnerable citizens, food accounts for up to 70% of total consumption. With 33.1 million Nigerians currently facing food insecurity due to insecurity in northern farming regions, the "stomach infrastructure" of the nation remains under severe pressure.
The data reveals a widening gap between capital-intensive sectors and the labour market. While sectors like Information and Communications Technology (ICT), Financial Services, and Oil and Gas are driving GDP growth, they are not generating enough jobs to lift millions out of poverty. PwC's Country Senior Partner, Sam Abu, noted that the focus must now shift toward how macroeconomic stability is "translated into sustainable economic growth" that impacts individual welfare.
