The Federal Government of Nigeria plans to spend approximately ₦206.5 billion on poverty-alleviation projects in the 2026 budget, a sum that represents far below 1% of the record ₦58.47 trillion national expenditure proposal. In percentage terms, this allocation is about 0.35% of the total budget (and roughly 0.89% of the capital budget of ₦23.21 trillion).
The paltry share devoted to fighting poverty is concerning. This comes despite President Bola Tinubu’s declaration that the budget would “promote job‑rich growth.” Reducing poverty was stated as a key objective.
The meagre funding also raises alarms given Nigeria’s worsening poverty crisis. Independent forecasts warn that by 2026, nearly 62% of Nigerians, about 141 million people, will be living below the poverty line.
Service-Wide Vote Dominates Poverty Funding
A detailed review of project-level data in the 2026 Appropriation Bill reveals two key insights. First, nearly the entire poverty alleviation budget is concentrated in two line items. These are listed under the Service-Wide Vote.
These are provisions for the National Poverty Reduction with Growth Strategy (NPRGS). One ₦100 billion allocation is labeled “FGN commitment, including National Social Investment Programme (NSIP) upscaling.” Another ₦100 billion is for general NPRGS recurrent funding.
Together, these ₦200 billion appropriations account for over 96% of all poverty alleviation funds in 2026 . This means that outside of the central NPRGS funds, all ministries, departments and agencies (MDAs) combined have only about ₦6.5 billion earmarked for poverty-related projects.
The NPRGS was launched in 2021 with the ambitious goal of lifting 100 million Nigerians out of poverty by 2030. (For context, “if India can lift 271 million people out of poverty between 2006 and 2016, Nigeria can surely lift 100 million out of poverty in 10 years,” then-President Muhammadu Buhari remarked at the inauguration of the strategy.)
The heavy reliance on the Service-Wide Vote for poverty reduction is significant. Additionally, the limited resources left for line ministries raise questions. It questions how effectively this strategy is being implemented.
Without the Service-Wide allocations, the rest of the federal budget’s anti-poverty effort is essentially a rounding error. It is spread thinly across numerous small projects in various agencies.
Major Anti-Poverty Projects: Grains, Tricycles and Training
Outside the central NPRGS funds, the 2026 budget’s poverty alleviation efforts are fragmented across dozens of MDAs. These efforts are often modest constituency projects or capacity-building programmes. An analysis shows that just five agencies account for over 80% of the ₦6.5 billion MDA-level poverty spending :
Federal Co-operative College, Ibadan – ₦2.87 billion: The single largest MDA allocation goes to a project. This project provides tricycles and motorcycles to “selected communities across the six geopolitical zones” for poverty alleviation.
This alone constitutes about 44% of all MDA-based poverty funds . Centre for Management Development – ₦840 million: Funds are designated for supplying empowerment items to small and medium enterprises (SMEs). This serves as a poverty alleviation measure.
Technology Incubator Centre (Abuja) – ₦700 million: Funds have been allocated for empowerment through technology. This aims to support poverty alleviation using innovative materials across all local government areas in Zamfara West Senatorial District.
Nigeria Stored Products Research Institute (Ilorin) – ₦507.5 million: ₦420 million to provide grains in two local government areas of Edo State. The funds are spread across projects mainly for grain distribution. ₦87.5 million to supply grains to communities in North-Central Nigeria.
Federal Co-operative College, Oji River – ₦364 million: ₦350 million is allocated for supplying grains to communities in Edo State to combat hunger. ₦14 million is for empowering women and widows in two constituencies.
Combined, these top five interventions sum to roughly ₦5.28 billion, or about 81% of the total MDA-level poverty allocation. The remaining ₦1.22 billion is scattered in smaller projects across various institutions.
Many of those focus on three main areas: food relief, basic tools, and skills training. For instance, the Federal Ministry of Agriculture has ₦105 million. This amount is for distributing agricultural grains for poverty relief in select localities of Kwara State. They also have another ₦35 million for borehole repairs and starter kits across the six zones.
The Border Communities Development Agency lists a mere ₦63 million for poverty empowerment projects. These projects are targeted at women in Zamfara North District.
Several agencies plan to supply equipment or “empowerment items.” The National Centre for Agricultural Mechanisation is allocating ₦245 million. This budget is for distributing tools and running skill acquisition programs for youth. SMEDAN is providing ₦105 million. They focus on training young people in creative industries and agriculture in Borno.
There is also a smattering of niche initiatives. ₦56 million is allocated for the National Space Research and Development Agency. This funding will apply space technology toward sustainable development goals like agriculture and education. About ₦16.5 million under the Science and Technology Ministry is for projects like promoting bamboo value chains. Another project is a chemical industry action plan tied to poverty reduction. ₦59.5 million is allocated to the Centre for Black and African Arts and Civilisation. This allocation is to host symposiums on empowering Africa. It also aims to integrate poverty-alleviation policies.
Most of the funded projects involve distribution of food items. They also provide transport or production tools such as tricycles, motorcycles, or equipment. Additionally, there are capacity-building programmes for youths, women, and small businesses. Only a very small portion goes into studies or innovation incubation.
These patterns suggest a short-term, relief-oriented approach. This involves mainly handing out goods and grants. It is not focused on systemic poverty reduction through large-scale economic inclusion or social welfare systems.
Poverty Ministry’s Budget Surge Raises Questions
A notable development in the 2026 budget is the massive increase in funding. This funding is for the newly rechristened Federal Ministry of Humanitarian Affairs and Poverty Alleviation.
The ministry’s total allocation jumped from ₦7.10 billion in 2025 to ₦23.56 billion in 2026, an increase of about 232%.
Crucially, almost this entire boost is in capital expenditure: the ministry’s capital budget ballooned from just ₦4.60 billion last year to ₦21.18 billion, making its budget 90% capital-focused in 2026 (versus about 65% in 2025).
On the surface, this shift toward project spending could indicate a stronger push to fund poverty-reduction initiatives on the ground.
However, a closer look at the ministry’s capital projects shows that many do not focus on poverty alleviation. They are not directly related to this issue at all.
For example, the ministry budgeted ₦112 million for new office furniture and ₦113.4 million for office equipment, alongside ₦70 million for a “digital press and strategic communication” setup.
It set aside ₦56 million for Nigeria’s participation in the 2025 UN General Assembly. Additionally, it allocated ₦63 million for ministerial retreats. Other sizable allocations under its capital vote include ₦108.5 million to implement financial reporting standards, ₦70 million for budgeting software, and ₦53.2 million for asset management systems.
Furthermore, the ministry is funding some typical constituency projects. These include ₦175 million for solar-powered streetlights in a federal constituency. They are also allocating ₦280 million for classroom construction in Cross River State.
None of these expenditures are classified as direct poverty-alleviation interventions. However, they are consuming a large chunk of the “poverty ministry’s” new capital budget.
The disparity highlights a potential misalignment between the ministry’s expanded budget and its core mandate.
Administrative improvements and community infrastructure have merit. Nonetheless, analysts note these are not substitutes for targeted social safety nets. Economic empowerment programmes directly benefit the poorest citizens.
There is a risk. A ministry nominally dedicated to poverty reduction could see its resources diverted to general bureaucracy. They might also be used for pet projects. This could dilute the impact on poverty itself.
Rising Poverty Amid Weak Safety Nets, Experts Warn
The timing of Nigeria’s skimpy poverty alleviation budget couldn’t be more critical. Poverty levels in the country are on a steep upward trajectory by all accounts.
The World Bank’s latest Nigeria Development Update highlights a rise in poverty in Nigeria. The number of Nigerians living in poverty surged from about 81 million in 2019 to roughly 139 million in 2025. This means nearly 62% of the population now lives below the poverty line.
Just between 2024 and 2025, approximately 14 million Nigerians fell into poverty in a single year. This was largely due to economic shocks. Inflation and slow income growth also contributed.
Looking ahead, PricewaterhouseCoopers (PwC) projects that Nigeria’s poverty rate will rise to 62% by 2026. This increase equates to about 141 million people falling into poverty.
This would be an alarming increase in the absolute number of poor people. It cements Nigeria’s unenviable status as one of the world’s poverty epicentres. (By comparison, Nigeria’s entire population in 1990 was roughly 95 million; now the country may soon have 140 million poor in 2026.)
International development experts point to Nigeria’s very low investment in social safety nets as a key factor.
A World Bank report titled “The State of Social Safety Nets in Nigeria” reveals concerning findings. Only 44% of the benefits from existing government safety-net programmes actually reach the poor. This indicates significant leakage of aid to unintended recipients or administrative overhead.
Moreover, Nigeria’s total spending on social protection is just 0.14% of GDP, far below the global average of 1.5% and even the Sub-Saharan African average of 1.1% . Such a tiny allocation has had “almost no impact” on reducing poverty, the World Bank observes bluntly.
By contrast, many peer countries dedicate a much larger share of national resources to support vulnerable populations.
The consequence of Nigeria’s under-investment is evident in communities across the nation. Inflation is eroding household purchasing power. With only minimal government relief, millions are being pushed below the poverty line. This happens despite an official narrative of reform and economic recovery.
Both the World Bank and PwC warn that, without urgent and targeted interventions, Nigeria’s poverty crisis will continue to deepen.
They advocate a combination of aggressive job creation. They also support productivity improvements in key sectors. Additionally, effective social protection programmes are promoted to cushion the poor.
For instance, boosting agricultural productivity could raise incomes. Supporting small businesses could also lead to higher incomes. Additionally, cash transfer schemes or food assistance could help the poorest cover basic needs.
Thus far, however, Nigeria’s efforts have been insufficient in scale. PwC’s Nigeria Economic Outlook 2026 notes that recent macroeconomic reforms have been implemented. These include currency adjustments and fuel subsidy removal. However, they have not yet translated into improved living conditions for most households.
“Weak real income growth and persistently high living costs will likely push more families into poverty over the next two years,” the report stated. It added that most low-income households are unlikely to see income gains large enough to offset soaring prices.
As hardship deepens, analysts warn that consumer spending (the engine of the domestic economy) could weaken further. Productivity gains may stall. This would happen as an unhealthy, undereducated populace struggles to contribute fully.
In the long run, rising poverty also puts pressure on public finances. It increases the demand for welfare and security spending. It also potentially stokes social unrest.
In summary, Nigeria’s 2026 budget allocation for poverty alleviation appears starkly out of step with the country’s escalating poverty challenge.
While the government officially touts a “Shared Prosperity” agenda, the numbers tell a different story. Only a trickle of funds is directed toward lifting up the poor. Meanwhile, tens of millions more Nigerians face being left behind.
This conservative budgeting approach to social welfare is drawing scrutiny from economists and the public alike. Many are urging the authorities to recalibrate spending priorities. They want more resources diverted to proven poverty-reduction initiatives. It is essential to ensure that funds truly reach those in need.
Without such a recalibration, observers caution that the goal of significantly reducing poverty in Nigeria will remain elusive. The human and economic costs of poverty will continue to mount.
As 2026 unfolds, all eyes will be on Nigeria’s leaders. Will they take additional steps to fund and implement meaningful poverty alleviation measures? Or will the rhetoric of poverty reduction again ring hollow in the face of grim statistics?
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