The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has recommended 13-point short-term measures to halt rising poverty levels in the country.

The recommendations, which include targeted economic stimulus packages, greater investment in agriculture, expanded access to credit and microfinance, and supportive and predictable tax environment and robust vocational training programmes for unemployed youth and women, come in the wake of the World Bank’s projection that Nigeria’s poverty rate could soar to 56 per cent by 2027.

World Bank’s projection

According to the World Bank, 104 million Nigerians, about 47 per cent of the population, were living below the poverty line in 2023, up from 40 per cent in 2018.

Rural communities were the most affected, with the number of people living in poverty jumping from 67 million to 84 million, while urban areas saw an increase from 13 million to 20 million people.

This rising poverty levels, driven majorly by sluggish economic growth, high inflation, and rising rural-urban disparities, would continue in the coming years, potentially reaching 56 per cent by 2027, the World Bank said in its latest report.

NACCIMA, OPS react

Worried by this trend, NACCIMA and the Organized Private Sector of Nigeria (OPSN) at the weekend called for urgent, decisive and coordinated action to stem the tide.

“The government should implement well-structured and targeted stimulus packages focused on vulnerable populations. Such measures should include cash transfers, food assistance programmes, and direct support to small and medium enterprises (SMEs) to stimulate job creation,” NACCIMA President, Dele Kelvin Oye, said in a statement at the weekend.

Oye, who is also the Chairman of the OPS, said the current support systems are often insufficient and lack proper structure, leading to instances of abuse and corruption, noting that independent monitoring and thorough evaluation must be instituted across all processes to address this.

“Given that a significant proportion of Nigerians rely on agriculture for their livelihoods, there is a need for targeted investment in this sector. Subsidising inputs, providing long-term single-digit credit, and expanding training programmes can help increase food security and foster sustainable livelihoods.

“Expanding access to microfinance for small businesses, cooperatives, and entrepreneurs will promote self-employment and help reduce poverty. Facilitating favourable lending conditions specifically for women and youth is crucial, alongside the urgent development of youth-targeted capital to address the ongoing trend of the ‘Japa Syndrome’,” he said.

Oye called for establishment of robust vocational and skills training programmes for the unemployed and underemployed, which would enhance employability and support new entrepreneurs in high-demand sectors. He urged the government to not only strengthen its existing partnership with the German government on vocational training but also collaborate with NACCIMA to expand vocational training opportunities nationwide.

“Improving infrastructure, particularly in rural areas, will increase market access for farmers and small businesses, leading to increased incomes and, ultimately, poverty reduction.

“There is a need to introduce tax incentives for businesses investing in underserved regions and for those prioritising local employment. Recent tax policy directions, such as extending tax regimes to free trade zones and imposing punitive levies on international investors, for instance, the Federal Competition and Consumer Protection Commission’s $220 million fine on WhatsApp and META, and the Financial Reporting Council’s taxes on business turnover, risk deterring vital investment. Such measures should be carefully reviewed to promote, rather than hinder, business growth and confidence.

“Public-private partnerships should be encouraged to finance economic development initiatives, leveraging combined resources and expertise for efficient delivery of social impact. The government can further support these efforts by de-risking major barriers for business investment, such as in the solid minerals industry, making it more attractive for private capital and boosting sectoral growth.

“Expanding social safety nets, which include unemployment benefits and healthcare access, will provide much-needed relief to those facing financial distress and support their pathways to recovery.

“Targeted awareness campaigns are crucial to ensure that vulnerable populations are informed about the various government programmes and services available to assist them,” he said.

The NACCIMA chief said the worsening insecurity in the country, from insurgencies to armed groups disrupting agricultural activities, remains a major driver of rural poverty and food insecurity, calling on the government to act swiftly and decisively to restore peace and security, especially in rural communities, thereby creating a stable environment for agricultural productivity and investment.

He advocated for prioritising intra-African trade through the African Continental Free Trade Area (AfCFTA) AfCFTA, which holds immense potential for poverty reduction, saying Nigeria must maximize the opportunities therein.

Quoting the Director-General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, he said that Africa remains minimally affected by recent US tariffs partly because only 6.5 per cent of its exports go to the US, while 4.4 per cent of imports come from there, noting that this limited trade is itself detrimental as it stalls economic growth.

“Africa, and Nigeria in particular, must leverage its own resources for development, especially as global aid declines,” he said. He added that according to Okonjo-Iweala, Lesotho previously exported $200 million worth of textiles to the US but now faces major challenges, even as Africa spends $7 billion annually importing textiles, suggesting that countries like Lesotho must shift focus to regional markets.

“Nigeria should reduce its reliance on raw material exports and instead prioritise adding value through local manufacturing. AfDB President Dr. Akinwumi Adesina aptly points out that industrialising via local manufacturing is fundamental to breaking the cycle of poverty and achieving genuine development,” Oye said.

“While much of Africa’s raw materials are exported, less than 2% are processed locally. Nigeria must reverse this trend to build a resilient, inclusive economy.

“It is essential to establish and maintain a robust, transparent framework for monitoring and evaluating all poverty-reduction initiatives, ensuring their effectiveness and enabling real-time improvements where necessary,” he said.

On Nigeria’s debt profile, the NACCIMA President quoted the Debt Management Office as saying the total public debt soared to N144.67 trillion ($94.23 billion) as of December 31, 2024, an increase of 48.58 per cent compared to N97.34 trillion ($108.23 billion) at the end of December 2023. The report, according to him, also noted a quarter-on-quarter increase from N142.32 trillion ($88.89 billion) in September 2024, underlining the growing challenge of debt sustainability.

Nigeria needs a minimum annual growth rate of 7 per cent to effectively reduce poverty, he said, citing Finance Minister Wale Edun, just as he urged government to act decisively and without delay in pursuing a multifaceted strategy that combines immediate relief measures with long-term, strategic planning.

“By implementing these short-term interventions, we can help shield Nigeria’s vulnerable populations and make meaningful progress in the fight against poverty,” he said, pledging NACCIMA’s readiness to collaborate with all stakeholders to foster sustainable economic growth and improve the livelihoods of all Nigerians.