By Innocent Edemhanria
Nigeria is endowed with abundant natural and human resources, yet it remains plagued by high rate of poverty, inequality and pervasive corruption. Despite decades of development plans and exploitation of natural resources resulting in significant oil and non-oil revenues, millions of Nigerians continue to live below the poverty line of $3.00 per day, being the World Bank’s current international poverty line for low-income countries updated in June 2025. This figure replaces the previous $2.15 poverty line based on 2017 purchasing power parities (PPPs).
The Federal Government of Nigeria through the National Bureau of Statistics launched the results of the 2022 Multidimensional Poverty Index (MPI) Survey in 2022. The report showed that 63% of persons living within Nigeria (133 million people) were multidimensionally poor. The report further established that 65% of the poor (86 million people) live in the North, while 35% (nearly 47 million) live in the South, and that poverty levels across States vary significantly, with the incidence of multidimensional poverty ranging from as low as 27% in Ondo to as high as 91% in Sokoto. Just recently, the World Bank raised alarm over the deepening poverty crisis in Nigeria when it revealed in its May 2025 edition of the Nigeria Development Update, that nearly half of the population now lives below the international poverty line (using the $2.15 per day mark), even as the country continues to report GDP growth. The World Bank estimated that approximately 46% of Nigerians, around 107 million people, survive on less than $2.15 per day. This marks a sharp rise in poverty levels, with an estimated 40 million more people slipping into poverty since 2018.
At the heart of this paradox lies the corrosive effect of corruption, a structural and systemic problem that distorts governance, undermines development, and perpetuates poverty. Understanding the deep connection between corruption and poverty is crucial to justify and design inclusive social protection systems that respond to the needs of Nigeria’s most vulnerable population. No doubt, corruption is driving poverty in Nigeria as there are clear evidence of embezzlement of public funds, bribery, procurement fraud, nepotism, and political patronage. These practices divert resources meant for financing development interventions and promoting public goods such as education, healthcare, infrastructure, and social welfare into private hands. It is on record that many public officials have been convicted, and assets have been recovered.
Funds allocated for essential services are often mismanaged or stolen, leading to the collapse of hospitals, schools, and social safety nets. When health and education systems fail, the poor are forced to pay more for private services amid poor income. Corruption skews policy decisions toward projects that yield personal or political benefits rather than social value. When citizens lose faith in government institutions due to corruption, they disengage from civic processes and the demand side interface becomes weakened, reducing accountability and allowing poverty inducing policies to persist. Corruption concentrates wealth and opportunities among a privileged few, creating a cycle of inequality.
Conclusively, corruption drives poverty, but the reverse is also true. Poverty creates a context in which corruption thrives. Desperate citizens, faced with low income, unemployment, limited opportunities and insecurity, may resort to bribery or patronage networks to access opportunities. Low public sector salaries and poor welfare systems incentivize petty corruption among civil servants. The lack of social protection among majority of poor Nigerians deepens vulnerability, pushing people into survivalist behaviours that perpetuate the corrupt system.
To break this vicious cycle, and in addition to all other measures, Nigeria must strengthen and expand inclusive social protection interventions and pay greater attention to policies and programmes designed to reduce vulnerability, build resilience, and promote equitable access to resources.
Effective social protection systems can limit opportunities for corruption by creating transparent, rule-based mechanisms for distributing benefits. When beneficiaries can access services through digital platforms or biometric verification, discretion and favouritism are reduced. Cash transfers, health insurance, and social assistance programmes empower citizens economically and socially. When citizens are less dependent on corrupt gatekeepers to survive, they can demand accountability and participate more actively in governance. Inclusive social protection ensures that vulnerable groups are not left behind. Programmes that target women, youth, and persons with disabilities not only alleviate poverty but also promote equity and social cohesion. Government should make effort to strengthen State legitimacy and public trust. When citizens experience tangible improvements in welfare through transparent and fair systems, their trust in government institutions increases. This legitimacy is vital for sustaining anti-corruption reforms.
To improve the situation, there are policy imperatives for Nigeria that can help to maximize the poverty-reducing and corruption-mitigating potential of social protection. The country should institutionalize transparency and accountability mechanisms in all social programmes, including open data systems and enabling independent monitoring. There is also the need to integrate anti-corruption safeguards such as digital payments and community verification in cash transfer and social investment initiatives. We should also promote inter-agency collaboration and expand social protection coverage beyond the formal sector to include majority of informal workers, rural populations, and internally displaced persons. We should ensure participatory policy design, with input from civil society, women’s groups, and grassroots communities.
*Innocent Edemhanria is programme manager of ANEEJ and writes from Benin City
