By Adebayo Michael
World Bank has warned that many rich Nigerians risk falling into poverty with shock.
The Washington-based bank said, such a shock can be induced by the issues of climate change or conflict, threatening Nigeria’s poverty reduction efforts.
It stated this in a new report titled, ‘A Better Future for All Nigerians: 2022 Nigeria Poverty Assessment’.
“Compounding macroeconomic frailties, shocks and uncertainty may blight Nigeria’s progress on poverty reduction; climate change could intensify shocks, further limiting opportunities to spread the proceeds of growth.
“Many non-poor Nigerians are only one small shock away from falling into poverty, while those who are already poor could be pushed into even deeper deprivation,” the report said.
The bank said that climate-related shocks, such as floods and droughts can harm agricultural activities, which can disrupt the lives of many Nigerian households.
Uncertainty about when such shocks may hit, combined with a lack of coping or insurance mechanisms, can trap households in poverty by discouraging the adoption of high-risk, high-reward technologies or investment in human and physical capital.
“This problem may currently be getting worse: climate change threatens to make floods and droughts more frequent and more severe, compounding this challenge for poverty reduction in Nigeria. Given the influence of shocks on income generation, it becomes even harder for any growth to percolate to Nigerian households and raise their living standards,” it noted.
Source: Nig.Punch
