The Federal Government of Nigeria has allocated approximately N206.50 billion for poverty alleviation projects in the 2026 budget, which accounts for a mere 0.35% of the total proposed budget of N58.47 trillion. This amount is spread across various ministries, departments, and agencies, with the majority coming from the Service Wide Vote. The National Poverty Reduction with Growth Strategy dominates the allocations, with provisions of N100 billion for FGN commitment, including NSIP upscaling, and another N100 billion for NPRGS recurrent allocation.
A review of the project-level data reveals that most of the allocations focus on three main areas: distribution of grains and food items, supply of transport and empowerment tools, and capacity building or skills acquisition for women, youths, and SMEs. However, the Federal Ministry of Humanitarian Affairs and Poverty Alleviation, which saw a significant increase in its allocation from N7.10 billion in 2025 to N23.56 billion in 2026, has been criticized for not directly linking its capital projects to poverty alleviation.
The World Bank has reported that Nigeria’s social safety-net spending is inefficient, with only 44% of total benefits reaching poor Nigerians. The country spends a mere 0.14% of its Gross Domestic Product on social protection, far below the global average of 1.5% and the Sub-Saharan African average of 1.1%. This has had “almost no impact” on poverty, according to the bank.
Nigeria’s poverty rate is projected to rise sharply to 62% by 2026, with about 141 million people expected to be living below the poverty line, according to PwC’s Nigeria Economic Outlook 2026. The report notes that weak real income growth and persistently high living costs are likely to push more households into poverty over the next two years. The World Bank’s Nigeria Development Update shares a similar view, warning that reducing poverty levels in Nigeria will remain a major challenge without targeted interventions such as job creation, productivity improvements, and effective social protection programs.
