Many non-poor Nigerians risk the shock of falling into poverty, the World Bank has said in a new report.
The report titled, ‘A Better Future for All Nigerians: 2022 Nigeria Poverty Assessment’, said climate or conflict, were further threatening Nigeria’s poverty reduction efforts.
“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, ” the report contained.
It further revealed “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.”
The bank said 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.”
