PricewaterhouseCoopers International Limited (PwC) has forecast in its latest publication an additional 13 million Nigerians risk falling below the national poverty line by 2025.
The prediction is contained PwC’s new report entitled ‘2025 Nigerian Budget and Economic Outlook’.
It attributed the increase in the number to heightened inflation, high interest rates, and naira depreciation could push
“Macroeconomic pressure points such as rising inflation, high interest rates, and naira depreciation may drive an additional 13 million people below the national poverty line by 2025.”
“The number of people living below the national poverty line is projected to increase by about 13 million by 2025,” attributing this rise to the country’s worsening inflation and high cost of living.
The report highlighted these economic headwinds as major contributors to the projected increase in poverty levels.
Partner and Lead at PwC Strategy & Practice, West Market Area, Olusegun Zaccheaus, stated that factors such as improved revenue generation, debt sustainability, broad policy interventions, monetary policy alignment, fiscal strategy highlights, and addressing key issues for macroeconomic stability will shape Nigeria’s economy in 2025.
He noted that foreign exchange stability, price stability, and interest rates are critical monetary issues for 2025. According to him, easing volatility will depend on price discovery, transparency, market friction, liquidity, supply-demand backlogs, and market and investor confidence.
“Inflation may ease as supply-driven inflationary pressures subside and monetary policy tightening is sustained. However, the Nigerian government’s planned expenditure increase to N47.9 trillion in 2025, coupled with the introduction of a new minimum wage, is expected to drive inflation. As a result, the CBN is likely to maintain a tight monetary policy to manage these inflationary pressures,” he explained.
He further highlighted that the planned increase in telecom tariffs and rising electricity prices are expected to contribute to sector-specific inflation.
While improved price stability in petroleum products (PMS) could help mitigate some inflationary pressures, the overall impact on sectors such as telecommunications and energy may still result in higher consumer costs.
