By Woke Joshua
ActionAid Nigeria has said Nigeria’s 4.2 per cent Gross Domestic Product (GDP) growth in the first half of 2026 remains insufficient to address widespread poverty, unemployment and the rising cost of living.
The organisation acknowledged the improvement in the country’s economic performance as highlighted in the World Bank’s October 2026 Nigeria Development Update but expressed concern that the gains had yet to translate into improved living conditions for millions of Nigerians.
ActionAid Nigeria Country Director, Dr Andrew Mamedu, on Monday, called on the Federal Government to pursue double-digit economic growth, reduce inflation to single digits, ensure affordable energy, improve workers’ purchasing power and strengthen accountability for public revenues.
According to the organisation, Nigeria’s real GDP grew by 4.2 per cent in the first half of 2026, compared with 3.9 per cent during the corresponding period in 2025.
It also noted that Federation revenues increased by 69 per cent in real terms between 2023 and 2025, while state government revenues rose by approximately 93 per cent. The country’s external reserves also exceeded $54 billion in September 2026.
However, ActionAid Nigeria maintained that improved macroeconomic indicators should be assessed alongside their impact on poverty, inequality, employment and household purchasing power.
Mamedu said economic growth should not be celebrated solely through government revenue figures when millions of Nigerians continued to struggle to afford basic necessities.
“We acknowledge the improvements in Nigeria’s economic indicators, but economic growth must mean more than impressive figures in government reports,” he said.
He added that the true measure of economic progress was the number of Nigerians lifted out of poverty rather than the amount of revenue generated by the government.
ActionAid Nigeria called for sustainable double-digit GDP growth of at least 10 per cent in the medium term, arguing that the current growth rate remained inadequate to address the country’s development challenges.
The organisation observed that with Nigeria’s population growing at approximately 2.1 per cent annually, the reported economic expansion translated into an indicative real per capita growth rate of about two per cent, assuming comparable annual growth rates.
It also expressed concern over inflation, which stood at 15.39 per cent in August 2026, urging the government to implement policies that would sustainably reduce it to single digits.
According to the statement, improving food production, ensuring affordable energy, strengthening transportation systems and increasing domestic productivity would help reduce inflationary pressures.
The organisation further cited World Bank estimates indicating that approximately 63 per cent of Nigerians live below the national poverty line, stressing the need for policies that would distribute economic opportunities and resources more equitably.
ActionAid Nigeria also questioned the relationship between increasing government revenues and investment in essential public services.
It cited World Bank figures showing that education’s share of aggregate state expenditure declined from 14.9 per cent in 2021 to 12.1 per cent in 2025, while health expenditure remained at approximately seven per cent.
The organisation called on federal and state governments to publish accessible expenditure reports detailing how increased revenues were being invested in education, healthcare, infrastructure, social protection and poverty reduction.
It stressed that public spending should be evaluated based on measurable results rather than budgetary allocations alone.
The organisation welcomed the Federal Government’s announcement of a 30-day petrol price relief initiative through NNPC Retail, particularly its focus on public transportation, but described the intervention as inadequate to address the prolonged increase in living costs.
According to the statement, petrol prices had risen from an average of ₦900 per litre in February 2026 to about ₦1,400 per litre at some retail outlets in October.
It said the increase had contributed to higher transportation fares, food prices and business operating costs, placing additional pressure on low-income households.
ActionAid Nigeria urged the government to introduce sustained and targeted interventions, including affordable public transportation, support for vulnerable households, improved electricity supply and investment in alternative energy.
The organisation also highlighted the challenges facing workers earning the national minimum wage of ₦70,000 monthly.
It noted that at ₦1,400 per litre, the entire monthly minimum wage would purchase only 50 litres of petrol, leaving workers with nothing for food, housing, healthcare, education and other essential needs.
It therefore called for a review of workers’ purchasing power and stronger measures towards a living wage.
To make Nigeria’s economy more responsive to the needs of ordinary citizens, ActionAid Nigeria urged federal and state governments to prioritise four areas.
These include providing reliable and affordable electricity through investments in generation, transmission, distribution and renewable energy; addressing insecurity to protect farming communities and restore economic productivity; supporting micro, small and medium-sized enterprises through affordable financing and reduced business levies; and attracting productive foreign direct investment into manufacturing, agriculture, technology and renewable energy.
The organisation said such investments should promote decent job creation, local value addition and sustainable economic development.
It also called for increased investment in education, healthcare and social protection, alongside transparent public expenditure tracking and measurable poverty-reduction targets.
Reiterating its position, Mamedu said Nigerians should begin to experience tangible improvements in their living conditions despite the reported economic recovery and rising government revenues.
“Nigerians cannot continue to hear that the economy is recovering while their purchasing power keeps shrinking. We need an economy that puts food on people’s tables, keeps children in school, provides reliable electricity and creates decent jobs,” he said.
He added that citizens had the right to demand better public services and greater accountability, insisting that economic reforms should ultimately be judged by their impact on poverty reduction.
ActionAid Nigeria maintained that economic growth should serve as a means of improving people’s lives, particularly those of women, young people and marginalised communities.
It challenged the government to demonstrate how its economic policies were translating into better incomes, improved access to essential services and greater opportunities for Nigerians.