Meta Description: A 2026 global poverty report reveals that 17.9 million Nigerians fell into multidimensional poverty between 2021 and 2024, raising concerns about living standards and economic growth.

Nigeria recorded the world’s largest increase in the number of people living in multidimensional poverty, with an additional 17.9 million people affected between 2021 and 2024.

The finding was contained in the 2026 Global Multidimensional Poverty Index, published by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI).

According to a report by Punch Newspapers on October 13, 2026, the latest figures show that Nigeria’s progress in reducing poverty between 2018 and 2021 was reversed in the following three years.

The development raises concerns about the living conditions of millions of Nigerians, even as the country continues to pursue economic reforms and improved economic stability.

Nigeria’s Multidimensional Poverty Rate Rises to 38.7%

The report showed that Nigeria’s multidimensional poverty rate increased from 33 per cent in 2021 to 38.7 per cent in 2024.

The number of people affected also rose from approximately 72.2 million to 90.1 million during the same period.

Nigeria recorded a larger increase than Afghanistan, which reported an additional 5.3 million people living in multidimensional poverty over its latest assessment period.

The findings indicate that millions of Nigerians experienced growing disadvantages in areas that affect their daily lives.

However, these figures measure multidimensional poverty, which is different from poverty measured by income alone.

What Is Multidimensional Poverty?

Multidimensional poverty goes beyond how much money a person earns. It considers several basic needs that determine people’s quality of life.

These include:

• Education: Access to schooling and years of education.
• Healthcare: Nutrition and child survival.
• Electricity: Access to reliable household electricity.
• Clean water and sanitation: Access to safe drinking water and proper sanitation facilities.
• Housing and living conditions: The quality of housing and access to essential household resources.

A person is classified as multidimensionally poor when their household experiences deprivation in at least one-third of the weighted indicators used in the index.

This means a household may experience poverty through poor access to education, healthcare, electricity and clean water, even when income alone does not fully explain its living conditions.

Poverty Reduction Progress Has Reversed

Nigeria recorded improvements in multidimensional poverty between 2018 and 2021. However, the latest report shows that the progress was not sustained.

The poverty rate fell from 37.2 per cent in 2018 to 33 per cent in 2021 before rising to 38.7 per cent in 2024.

The number of people affected followed a similar pattern, declining to about 72.2 million in 2021 before increasing to approximately 90.1 million in 2024.

The figures highlight the difficulty of sustaining poverty reduction when households continue to face challenges affecting access to essential services and basic living conditions.

Northern States Face Significant Poverty Challenges

The report also identified considerable differences in poverty levels and living conditions across Nigeria.

Kebbi, Yobe and Sokoto were among the states with the highest multidimensional poverty burdens, while Lagos recorded the lowest multidimensional poverty index value.

The report also highlighted differences in the causes of deprivation between states.

For example, nutrition and child mortality contributed more significantly to multidimensional poverty in Yobe, while inadequate access to water and electricity played a stronger role in Sokoto.

These differences suggest that poverty reduction programmes need to consider the specific challenges facing each community rather than relying entirely on a single national approach.

What Does This Mean for Nigerian Businesses?

Rising poverty can affect businesses by reducing consumers’ purchasing power and changing how households spend their money.

1. Lower consumer spending

When households struggle to afford food, transportation and other essential goods, they may reduce spending on non-essential products and services. Businesses that depend on discretionary spending could experience weaker demand.

2. Greater pressure on small businesses

Small and medium-sized businesses may find it more difficult to increase prices when customers are already struggling financially. At the same time, rising operating costs can put pressure on profit margins.

3. Changes in consumer behaviour

Customers may prioritise affordable products, smaller pack sizes and essential services. Businesses that understand these changes can adjust their products and pricing to meet customers’ needs.

4. Challenges for investment and expansion

Persistent poverty can affect long-term market demand, workforce productivity and the growth opportunities available to businesses. Companies may need to consider household purchasing power when planning expansion into different markets.

Why Poverty Reduction Matters for Economic Growth

A growing economy does not automatically mean that every household experiences improved living conditions.

For economic growth to create wider benefits, people need access to jobs, education, healthcare, reliable infrastructure and opportunities to earn sustainable incomes.

The latest report highlights the importance of connecting economic policies with improvements in people’s daily lives.

Expanding employment opportunities, improving public services and strengthening access to essential resources can help households become more financially secure while supporting a stronger consumer market.

Conclusion

Nigeria’s additional 17.9 million multidimensionally poor people between 2021 and 2024 highlight the challenges facing the country’s poverty reduction efforts.

The findings show that progress must be measured not only through economic growth but also through improvements in education, healthcare, electricity, sanitation and other essential living conditions.

For Nigerian businesses, the figures underline the importance of understanding consumers’ financial realities, offering affordable solutions and planning for changing market demand.

Sustained poverty reduction will be important for improving household welfare and building a stronger, more inclusive economy.

Source: Punch Newspapers, citing the 2026 Global Multidimensional Poverty Index published by UNDP and OPHI.