Business
Nigeria ranks third in global poverty index
World Bank President, Jim Yong Kim yesterday at the ongoing IMF/World Bank Spring Meetings restated that Nigeria is one of the top five countries that has the largest number of poor. Nigeria he said ranked third in the world while India ranked number one with 33 per cent of the world poor. China is ranked second with 13 per cent of World poor, followed by Nigeria where seven per cent of the world poor live in. He said that Bangladesh has six per cent share of the world poor while the Democratic Republic of Congo has five per cent of the world poor population.
According to Jim Yong Kim these five countries are home to 760 million of the world’s poor. It said that adding another five countries,mIndonesia, Pakistan, Tanzania, Ethiopia and Kenya would encompass almost 80 per cent of the extreme poor. It said that a sharp focus on these will be central to ending poverty.
The world Bank President said ” While economic growth remains vital for reducing poverty, growth has its limits, according to a new World Bank paper released today. Countries need to complement efforts to enhance growth with policies that allocate more resources to the extreme poor. These resources can be distributed through the growth process itself, by promoting more inclusive growth, or through government programs, such as conditional and direct cash transfers.
In addition, the paper notes, it is imperative not just to lift people out of extreme poverty; it is also important to make sure that, in the long run, they do not get stuck just above the extreme poverty line due to a lack of opportunities that might impede progress toward better livelihoods.
“Economic growth has been vital for reducing extreme poverty and improving the lives of many poor people,” said World Bank Group President Jim Yong Kim. “Yet, even if all countries grow at the same rates as over the past 20 years, and if the income distribution remains unchanged, world poverty will only fall by 10 percent by 2030, from 17.7 percent in 2010. This is simply not enough, and we need a laser like focus on making growth more inclusive and targeting more programs to assist the poor directly if we’re going to end extreme poverty.”
Kim added: “To end extreme poverty, the vast numbers of the poorest – those earning less than $1.25 a day – will have to decrease by 50 million people each year until 2030. This means that 1 million people each week will have to lift themselves out of poverty for the next 16 years. This will be extraordinarily difficult, but I believe we can do it. This can be the generation that ends extreme poverty.”
“Growth alone is unlikely to end extreme poverty by 2030, says the paper, because as extreme poverty declines, growth on its own tends to lift fewer people out of poverty. This is because, by this stage, many of the people still in extreme poverty live in situations where improving their lives is extremely difficult. The paper notes that increased income inequality can dampen the impact of growth on reducing poverty. Inequality is not just a problem in itself: in countries with rising income inequality, the effect of growth on poverty has been dampened or even reversed. In contrast, research indicates that in countries where inequality was falling, the decline in poverty for a given growth rate was greater. Even if there is no change in inequality, the “poverty-reducing power” of economic growth is less in countries that are initially more unequal. Thus, the World Bank Group’s goals of ending extreme poverty and boosting shared prosperity are closely linked—lasting progress in ending extreme poverty also requires continued attention to what is happening to the bottom 40 percent of the population.
“It is a sad commentary on our prosperous world that over one billion people live in extreme poverty. It is a welcome call from the World Bank Group to not just mitigate poverty but bring it to closure and also to strive for a more equitable world. To achieve these ends we will need determination, but also ideas and innovation, for the ways of the economy can be strange,” said Kaushik Basu, Senior Vice President and Chief Economist at the World Bank.
The World Bank’s shared prosperity goal, endorsed by shareholders in 2013, provides a window into understanding inequalities of income and opportunities. While significant progress has been made in lifting people out of extreme poverty, many people remain poor, often due to lack of opportunity. Putting a spotlight on the bottom 40 percent can help ensure that they, too, reap the full benefits of a country’s economic progress.
“To assist the bottom 40 percent, it is vital to know their characteristics, which differ from country to country. For example, in Rwanda, 63 percent of the population lives in extreme poverty; that is, the entire bottom 40 percent and more live in extreme poverty. In Colombia, by contrast, 8 percent of the population lives in extreme poverty, and in Turkey extreme poverty has become frictional; that is, only 1.3 percent of the population is estimated to be extremely poor by global standards.
In Bangladesh, two-thirds of the bottom 40 percent live in rural areas, compared with Brazil, where 23 percent of the bottom 40 percent reside in rural areas. In Rwanda, 11 percent of the bottom 40 percent have secondary education, while in Turkey, 55 percent have attained secondary education. In terms of employment, 63 percent of the bottom 40 percent in the Philippines work in agriculture, while in Jordan agriculture employs only 11 percent of the bottom 40 percent.
“The complexities of identifying who the bottom 40 percent are in each country underscores the challenges of crafting country-specific policies to effectively reach them,” said Jos Verbeek, lead author of the paper and lead economist in the World Bank’s Development Prospects Group.
Tackling poverty requires understanding where the greatest number of poor live, while at the same time also concentrating on where hardship is most pervasive. This entails concerted efforts in countries where large numbers of the world’s 1.2 billion poor live. The top five countries, in terms of numbers of poor, are India (with 33 percent of the world’s poor), China (13 percent), Nigeria (7 percent), Bangladesh (6 percent) and the Democratic Republic of Congo (5 percent), which together are home to nearly 760 million of the world’s poor. Adding another five countries – Indonesia, Pakistan, Tanzania, Ethiopia, and Kenya – would encompass almost 80 percent of the extreme poor. “Hence, a sharp emphasis on these countries will be central to ending extreme poverty, says the paper.
However, many smaller countries have far higher shares of their people living below the poverty line. In 16 countries, more than half the population is living in extreme poverty. The top five countries, in terms of poverty density, are the Democratic Republic of Congo (where 88 percent of the population is below the poverty line), Liberia (84 percent), Burundi and Madagascar (81 percent each), and Zambia (75 percent). Reducing poverty in these places is as important as making progress in countries where the absolute number of poor people is much bigger.
“To reach the twin goals, the World Bank Group will need to tailor its support depending on the level of each nation’s urbanization, the extent of its energy needs, the levels of basic services, the human capabilities of every citizen and capacities of their governments. Success will require taking transformational solutions to scale, whether in terms of programs to improve sanitation in burgeoning cities, projects to ensure more efficient use of water for farming and other uses, expansion of health coverage for lower-income people, or the extension of welfare-to-work programs in places with high youth unemployment.
“Equally, progress in improving poor people’s lives will not be sustainable if the environmental consequences of economic development are not taken into account. Making growth processes resource-efficient, cleaner and more resilient without necessarily slowing them is important to sustaining economic development”.
National Bureau of Statistics has said that Nigeria’s Company Income Tax rose sharply in the second quarter of 2025, hitting N2.78 trillion.
The figure represents a significant 40.27 per cent increase compared to the N1.98 trillion recorded in the first quarter of the year, reflecting both improved tax compliance and stronger corporate performance across key economic sectors.
The NBS report said that domestic company income tax payments accounted for the bulk of the revenue, contributing N2.31 trillion, while offshore collections stood at N469.36 billion during the period under review.
According to the NBS, the financial and insurance sector recorded the highest quarter-on-quarter growth, rising by an astonishing 772.29 per cent, driven by improved profitability among banks, fintechs, and insurance firms following robust half-year earnings.
This, according to NBS, was followed by wholesale and retail trade, as well as motor vehicle repair activities, which grew by 538.38%.
Activities of households as employers also surged by 526.79%, although their overall contribution to total company income tax remained negligible.
On the flip side, some sectors experienced sharp declines in company income tax remittances.
Activities of extraterritorial organizations and bodies dropped by –45.01%, while education, public administration, defence, and compulsory social security recorded declines of –26.61% and –18.17% respectively.
The contraction in these sectors, particularly education and public administration, highlights persistent structural and fiscal challenges confronting government-funded institutions.
In terms of contribution to total tax revenue, financial and insurance activities led with a dominant 44.13%, reflecting the sector’s continuing expansion and strong capital flows.
Manufacturing followed with 15.57%, bolstered by increased production output and improved supply chain activity.
Mining and quarrying ranked third, contributing 9.18%, supported by higher commodity prices and renewed interest in solid mineral development.
At the bottom of the contribution chart were activities of households as employers, which accounted for just 0.01%, as well as activities of extraterritorial organizations and bodies, and water supply, sewerage, waste management, and remediation services, each contributing 0.04%. Despite economic headwinds, year-on-year company income tax collection still rose by 12.66% when compared to Q2 2024, underscoring moderate but steady improvement in government revenue mobilisation.
Company income tax collection in the same period of 2024 rose by 150.83 per cent N2.47 trillion. In the first three months of the year, company income tax collection stood at N984.61 billion. According to the report, local payments in the period under review amounted to N1.35 trillion, while foreign CIT payments contributed N1.12 trillion. On a quarter-on-quarter basis, the agriculture, forestry, and fishing sectors exhibited the highest growth rate at 474.50%, followed by financial and insurance activities at 429.76%, and manufacturing at 414.15%.
Lagos State government has reaffirmed its unwavering commitment to supporting micro, small, and medium enterprises (MSMEs) across the state through visibility, capacity building, and market access. Commissioner for Commerce, Cooperatives, Trade, and Investment, Folashade Ambrose-Medebem, made the pledge on Sunday at the closing ceremony of the 2025 Lagos International Trade Fair (LITF). The 38th edition of the event, organised by the Lagos Chamber of Commerce and Industry (LCCI), had its theme as “Connecting Business, Creating Value.”
Ms Ambrose-Medebem said every entrepreneur, regardless of scale, deserves an enabling environment to thrive and contribute meaningfully to the state’s economic prosperity. She said the state, through strategic investments in infrastructure, institutional reforms, and continuous engagement with the private sector, was building a Lagos that worked for business. The commissioner added that the state would continue to foster innovation, competitiveness, and sustainability.
“As a government, we remain steadfast in our commitment to making Lagos the preferred destination for commerce and enterprise. This fair has once again demonstrated the power of connection: connection between producers and consumers, investors and innovators, the government and the private sector, and local entrepreneurs and global brands. Every handshake, every conversation, every business card exchanged here is a building block toward the future we are creating, a future of prosperity that leaves no one behind,” she said.
The commissioner urged businesses to continue to connect, collaborate, and create value, saying, “In Lagos, we do not just trade goods; we trade ideas, build futures, and transform lives. “Together, let us continue to make Lagos not just a place of commerce, but a symbol of progress, innovation, and endless opportunity.” Gabriel Idahosa, president of LCCI, urged governments at all levels to continue addressing the issues of creating an enabling environment in the country.Mr Idahosa said focus should be on infrastructure, security, and implementing the right policies to address the key drivers of high inflation.
This, he said, was needed to fully harness the vast enterprising resources of domestic and foreign investors for the diversification of our economy and the welfare of our people. He pledged the commitment of the organised private sector to stand solidly behind the state in its quest to actualise its innovative initiatives on all fronts. NAN
Jumia Technologies AG posts a $17.7 million loss before income tax in the third quarter of 2025, down 1% year-on-year from $17.8 million in the third quarter of 2024. The road to profitability has remained long as ecommerce continues to face uncertainties, including widening competition with rivals in the same industry. The e-commerce company revenue came in at $45.6 million compared to $36.4 million in the third quarter of 2024, representing a 25% year-over-year surge in the period. The company reported gross merchandise value of $197.2 million compared to $162.9 million in the third quarter of 2024, up 21% year-over-year. Excluding South Africa and Tunisia, physical goods GMV grew 26% year-over-year, Jumia revealed in the unaudited financials.
Jumia said in its report that the GMV growth was driven by supply and strong marketing execution, partially offset by lower corporate sales in Egypt. Excluding corporate sales, GMV in reported currency grew 37% year-over-year. Nigeria’s momentum accelerated, with order growth up 30% and GMV up 43% year-over-year, Jumia said. The e-commerce giant’s operating loss reduced by 13% year-over-year to $17.4 million compared to $20.1 million in the third quarter of 2024. The company’s adjusted earnings before interest tax depreciation and amortisation loss dropped by 17% to $14.0 million compared to $17.0 million in the third quarter of 2024.
Jumia reported a loss before income tax of $17.7 million, a slight reduction of 1% compared to $17.8 million in the third quarter of 2024. Liquidity printed at $82.5 million, a decrease of $15.8 million in the third quarter of 2025, compared to an increase of $71.8 million in the third quarter of 2024, which included the net proceeds from the August 2024 At-the-Market (ATM) offering, and a decrease of $12.4 million in the second quarter of 2025.
Its net cash flow used in operating activities settled at $12.4 million compared to net cash flow used in operating activities of $26.8 million in the third quarter of 2024 and $12.7 million used in the second quarter of 2025. The result includes a positive working capital contribution of $0.4 million.
Jumia reported that customers’ orders grew 34% year-over-year, driven by strong execution, enhanced product assortment, and healthy consumer demand across key categories. It said quarterly active customers ordering physical goods grew by 23% year-over-year, highlighting continued engagement and customer loyalty. As of September 30, 2025, the Company’s liquidity position was $82.5 million, comprised of $81.5 million in cash and cash equivalents and $1.0 million in term deposits and other financial assets, it said in the report Jumia’s liquidity position decreased by $15.8 million in the third quarter of 2025, compared to an increase of $71.8 million in the third quarter of 2024, which included net proceeds from the August 2024 At-the-Market (ATM) offering, and a decrease of $12.4 million in the second quarter of 2025.
Net cash used in operating activities was $12.4 million in the third quarter of 2025, compared to a net cash used of $26.8 million in the third quarter of 2024 and $12.7 million used in the second quarter of 2025. The result includes a positive working capital contribution of $0.4 million in the third quarter of 2025, compared to a negative working capital contribution of $9.1 million in the third quarter of 2024, primarily reflecting improvements in operating performance.
In addition, the Company reported $1.4 million in capital expenditures in the third quarter of 2025, compared to $0.9 million in the third quarter of 2024, primarily reflecting investments in infrastructure and facility enhancements to support business growth. “This quarter marks a significant acceleration in customer demand and order growth, driven by strong execution across our markets and growing consumer trust in the Jumia brand. We believe Jumia has reached an inflection point as our compelling value proposition, and improved operational discipline position us for sustainable, profitable growth.
“We continue to strengthen our cost structure and sharpen operational discipline, reinforcing our path toward profitability. Our focus remains on execution and customer engagement as we build a more efficient business.
“We believe that we are on track to reach breakeven on a Loss before Income tax basis in Q4 2026 and achieve full-year profitability in 2027, positioning Jumia for long-term growth and value creation.”
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