The Centre for Management Development has been allocated N840m to supply empowerment items to SMEs to alleviate poverty in selected locations. This is the second-largest MDA-based poverty intervention after the tricycle programme under the Cooperative College, Ibadan.

Water-related agencies have smaller entries. The Federal Ministry of Water Resources and Sanitation has N5.6m for the coordination of river basin strategy and human capital development for poverty alleviation, while the Upper Niger River Basin Development Authority has N35m for human capital development for youths through Songhai activities. The Nigeria Integrated Water Management Commission has N70m for empowerment across Adavi Local Government Area in Kogi State.

The Centre for Black and Africa Arts and Civilisation has N59.5m for two symposiums on empowering Africa and integrating policy frameworks for sustainable poverty alleviation and economic development.

The Federal Ministry of Women Affairs headquarters has N14m for an end-period-poverty campaign, while the Federal Ministry of Humanitarian Affairs and Poverty Alleviation has N20.3m for the establishment and activities of the National Council on Humanitarian Affairs and Poverty Reduction.

Looking at the five MDAs with the largest poverty-related allocations outside the Service Wide Vote, the Federal Co-operative College Ibadan leads with N2.87bn, followed by the Centre for Management Development with N840m, the Board for Technology Business Incubator Centre Abuja with N700m, Nigeria Stored Products Research Ilorin with N507.5m, and the Federal Co-operative College Oji River with N364m. Together, these five account for about N5.28bn out of the N6.50bn MDA total, which is more than 81 per cent of all poverty tagged spending outside the central NPRGS provisions.

The data shows that most projects focus on three main areas. These are the distribution of grains and food items, the supply of transport and empowerment tools such as tricycles and motorcycles, and capacity building or skills acquisition for women, youths, and SMEs. A smaller portion goes into studies, symposiums, technology incubation, and administrative coordination of poverty strategies.

However, The PUNCH observed that the Federal Ministry of Humanitarian Affairs and Poverty Alleviation saw its total allocation jump from N7.10bn in 2025 to N23.56bn in 2026, an increase of N16.46bn or about 232%.

The rise is driven almost entirely by capital spending, which surged from N4.60bn to N21.18bn, while personnel costs fell from N1.52bn to N1.40bn, and overheads were flat at N978.39m.

This means the ministry’s 2026 budget is now 90% capital-heavy, compared with about 65% in 2025, showing a sharp shift towards project-based spending rather than administration. Despite this, several of the capital projects were not directly linked to poverty alleviation.

The PUNCH observed the ministry budgeted N112m for office furniture and fittings, N113.4m for office machines and equipment, and another N70m for digital press and strategic communication facilities.

It further provided N56m for participation in the 2025 United Nations General Assembly, N63m for ministerial retreats, and N108.5m for compliance with international public-sector accounting and financial reporting standards.

Administrative and systems-related items, such as N70m for accounting and budgeting automation, N53.2m for asset inventory and reconciliation software, and N49m for reforms coordination, were also included under capital spending.

Also, N175m was earmarked for solar streetlights in Funtua and Dandume Federal Constituency and N280m each for classroom construction in two local government areas in Cross River State, projects that are not directly classified as poverty alleviation interventions.

In a report titled “The State of Social Safety Nets in Nigeria”, the World Bank revealed that only 44 per cent of total benefits from government-funded safety-net schemes actually reach poor Nigerians.

The World Bank described Nigeria’s social safety-net spending as inefficient, saying a smaller portion of benefits goes to the poor despite their dominance among beneficiaries.

According to the bank, Nigeria spends barely 0.14 per cent of its Gross Domestic Product on social protection, far below the global average of 1.5 per cent and the Sub-Saharan African average of 1.1 per cent. That tiny allocation, the report warns, has had “almost no impact” on poverty.

In its Nigeria Economic Outlook 2026, PwC noted that Nigeria’s poverty rate is projected to rise sharply to 62 per cent by 2026, with about 141 million people expected to be living below the poverty line.

The report notes that, despite recent policy actions aimed at restoring macroeconomic stability, weak real income growth and persistently high living costs are likely to push more households into poverty over the next two years.

PwC estimates that most Nigerians will struggle to record income gains strong enough to offset rising prices in the near term, particularly as inflation continues to erode purchasing power.

“Poverty is projected to rise to 62 per cent (141 million people) by 2026, reflecting weak real income growth and lingering inflation effects,” PwC noted.

The World Bank’s Nigeria Development Update shares a similar view. The lender noted that the absolute number of people living in poverty has increased sharply, from about 81 million in 2019 to roughly 139 million in 2025, meaning nearly 62 per cent of the population now lives below the poverty line. Earlier estimates showed about 115 million Nigerians in poverty in 2023, rising to around 129 million in 2024, indicating that about 14 million people fell into poverty in just one year.

Both PwC and the World Bank caution that without targeted interventions such as job creation, productivity improvements, and effective social protection programmes, reducing poverty levels in Nigeria will remain a major challenge. Rising poverty, they warn, could also weaken domestic consumption, limit productivity growth, and place additional pressure on public finances.

PUNCH.