Fuel subsidy removal pushes Nigeria's poverty rate to 63%
Nigeria's fuel subsidy removal in May 2023 caused poverty to surge from 50% to 63%, according to University of Abuja research. Low-income households suffered most, reducing consumption and borrowing to survive. Businesses faced rising costs and closures. Government social protection programs moderated poverty to 56.2% but were insufficient. The Central Bank of Nigeria (CBN) cited necessary reforms to fix foreign exchange distortions costing 6% of GDP. Stakeholders urge stronger safety nets and gradual implementation.