The World Bank has disclosed in a new update that around 7.1 million additional Nigerians will be forced into poverty due to inflation in case no compensation is urgently made.
The World Bank’s Nigeria Development Update, released on Thursday, revealed that social protection programs in the African country currently covers merely 19 percent of the total population.
World Bank urged the Nigerian government to invest in the social protection system, saying “Invest in a social protection system that can provide timely, targeted, and temporary support to households experiencing a shock like the increase in PMS (Portfolio Management Services) prices due to subsidy removal.”
It confirmed in its update that Nigeria spends only 0.7 percent of GDP on social safety nets and 19 percent of the population is covered.
The World Bank cited the social benefits of social protection programs, including human capital investment, education outcomes, and health outcomes. It also said the economic benefits of social protection programs are trust in the government, support for and therefore sustainability of reform efforts.
