What Nigeria’s High Poverty Rate Has to Do with Ethnic Conflicts

Nigeria has endured decades of violent insurgencies and ranks 6th on the 2025 Global Terrorism Index. Numerous people have been killed and millions displaced. The number of casualties from terrorist attacks in 2025 can be seen in both the Armed Conflict Location & Event Data and the Council on Foreign Relations’ Nigeria Security Tracker. Most of the casualties are in places with high poverty levels, as the Nigerian Poverty Map shows.

Tolu Olarewaju, who has researched ethnic poverty, unpacks why regions of violence and poverty overlap in Nigeria.

What is the state of poverty in Nigeria

Poverty in Nigeria comes in various forms: a lack of income and productive resources to sustain livelihoods; hunger and malnutrition; illness and death; and limited access to education and other basic services. It includes inadequate housing and unsafe environments. It is also seen in a lack of participation in decision-making and civil, social and cultural life.

Nigeria currently has a population of 237 million people and over 133 million Nigerians are living in this kind of poverty. It is higher in rural areas, where 72% of people are poor, compared to 42% of people in urban areas. The current poverty in Nigeria is the result of two key factors:

• history – particularly the slave trade and British colonial rule, which put the economic gain of the British Empire ahead of the development of the local population
• corruption and poor governance practices.

My work shows that when initiatives are introduced to reduce poverty in Nigeria, they are often hijacked by corrupt individuals.

There have been numerous government efforts to combat poverty in Nigeria. The current administration launched the “Renewed Hope Conditional Cash Transfer” programme in October 2023 to cushion the effects of its fuel subsidy removal, which had raised the cost of living and caused inflation. The programme hasn’t made much impact on the level of poverty in the country.

The failures of successive Nigerian governments to reduce poverty stem from multiple factors. They include corruption, poor targeting of programmes, limited funding, weak legislative oversight, political interference, and the absence of a flexible, people-centred approach.

Meanwhile, poverty is the common thread across the places experiencing terrorism in Nigeria. Poor people are more likely to be recruited into terrorist groups, and their targets are likely to be poor people like themselves.

What is ethnic poverty?

Ethnic poverty occurs when there is systemic poverty for an ethnic group. An ethnic group is a social group that shares a common and distinctive history, culture, religion, language, or the like.

My work on ethnic poverty also shows that it can lead to conflicts that are easily labelled as ethnic, religious or tribal.

Ethnic poverty disparities, uneven development and radical ideologies will make any country susceptible to violent insurgencies. This has occurred, for example, in Rwanda, Sri Lanka, Bosnia and Herzegovina, and Ethiopia.

Ethnic poverty can increase hatred and violence, but economic growth could create a “win-win solution” if wealth can be shared equitably.

Nigeria is a multinational state where more than 250 ethnic groups live, speaking over 500 distinct languages. The three largest ethnic groups are the Hausa in the north, the Yoruba in the west, and the Igbo in the east. The country is prone to violent insurgencies where armed groups who suffer from ethnic poverty try to overthrow the government.

How does ethnic poverty play out in Nigeria

Poverty in Nigeria is intertwined with ethnicity. Inequalities in wealth and education persist between ethnic groups and regions. For example, 65% of the poor and less educated live in the north, where the Hausa and Fulani ethnic groups are predominant. Poverty levels across states also vary. The incidence of multidimensional poverty ranges from a low of 27% in Ondo (in the south) to a high of 91% in Sokoto (in the north).

What are the solutions to ethnic poverty?

There is no single solution, but several that will mature over time. The Nigerian government should:

• Hold transparent discussions and elections to decide if a regional system of government that focuses on local problems will be better than the current centrally planned government.
• Devise a strategy that combats corruption and focuses on ethnic groups with higher poverty rates.
• Expand education and vocational training to promote peace and tolerance, and employable skills linked to local markets.
• Deliver entrepreneurship training and financial literacy programmes to foster self-reliance and community-based economic growth.
• Offer incentives for responsible industrial development and local enterprise investment in areas of high ethnic poverty.
• Implement policies that promote balanced urban–rural economic growth and integrate ethnic populations economically into the national story.
• Invest in transport, digital and communication infrastructure in remote areas to improve access to education, security and markets.
• Promote inclusive national narratives that celebrate ethnic diversity.

Together, these measures can create a more equitable social contract that gives every ethnic group a stake in national progress. By being transparent and accountable, the government can rebuild trust.

Sustained investment in people, infrastructure and local economies will help break the cycle of inter-generational ethnic poverty. Over time, these efforts can strengthen unity and share prosperity across Nigeria.

Tolu Olarewaju does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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