ActionAid: Nigeria’s 4.2% GDP Growth Insufficient to Reduce Poverty

By Zainab Uzomah| Abuja

ActionAid Nigeria has said Nigeria’s 4.2 per cent economic growth in the first half of 2026 remains insufficient to tackle poverty, unemployment and declining household purchasing power, calling for faster growth, lower inflation and greater investment in essential public services.The organisation also urged the Federal and state governments to ensure that rising public revenues translate into improved living conditions for millions of Nigerians.

The Country Director of ActionAid Nigeria, Dr Andrew Mamedu, stated this in Abuja on Monday, October 12, while reacting to the World Bank’s October 2026 Nigeria Development Update.

According to the report, Nigeria’s real Gross Domestic Product (GDP) grew by 4.2 per cent in the first half of 2026, up from 3.9 per cent in the corresponding period of 2025. Federation revenues increased by 69 per cent in real terms between 2023 and 2025, while state government revenues rose by approximately 93 per cent. External reserves also exceeded $54 billion in September 2026.

The World Bank report further indicated that improved macroeconomic performance had helped stabilise Nigeria’s poverty rate for the first time since 2019.

However, ActionAid said stabilising poverty was not the same as reducing it, noting that millions of Nigerians continued to struggle with rising living costs and shrinking purchasing power.

“We acknowledge the improvements in Nigeria’s economic indicators, but economic growth must mean more than impressive figures in government reports,” Mamedu said.

“When revenues rise, but families cannot afford food, transportation, healthcare, and education, we must ask who benefits from that growth. The true measure of economic progress is not how much money government generates, but how many Nigerians are lifted out of poverty.”

ActionAid seeks faster growth, lower inflation

ActionAid called for sustainable double-digit GDP growth of at least 10 per cent in the medium term, arguing that the current rate was inadequate given the scale of poverty, unemployment and development challenges facing the country.

With Nigeria’s population growing by approximately 2.1 per cent annually, the organisation said the reported economic expansion translated into indicative real per capita growth of about two per cent, assuming comparable annual growth rates.

It also called for inflation to be reduced to single digits through increased domestic production, improved food supply, affordable energy and more reliable transportation.

Headline inflation stood at 15.39 per cent in August 2026, while World Bank estimates suggest that about 63 per cent of Nigerians live below the national poverty line.

ActionAid said these figures underscored the need for economic policies that prioritise decent employment, higher incomes and reduced inequality.

Rising revenues must improve public services

The organisation expressed concern that increased government revenues had not been matched by stronger investment in essential services.

It cited figures from the World Bank report 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 spending remained around seven per cent.

ActionAid called on federal and state governments to publish accessible reports detailing how public revenues were spent on education, healthcare, infrastructure and social protection, alongside measurable results.

It said greater transparency was necessary to ensure that additional revenues improved public services and reached underserved communities.

Petrol relief falls short of household needs

ActionAid welcomed the Federal Government’s 30-day petrol price relief initiative through NNPC Retail, particularly its focus on public transportation, but said the intervention was insufficient to address the prolonged increase in living costs.

The organisation noted that petrol, which averaged about N900 per litre in February 2026 before the escalation of the Middle East conflict, was selling for approximately N1,400 per litre at some retail outlets in October.

It warned that higher fuel prices were increasing transportation fares, food prices and business operating costs, placing additional pressure on low-income households.

At N1,400 per litre, ActionAid noted, the N70,000 monthly minimum wage would buy just 50 litres of petrol, leaving workers with little capacity to meet other essential expenses.

The organisation called for sustained, targeted measures to cushion vulnerable households against energy price shocks, including affordable public transportation, improved electricity supply and support for alternative energy.

It also urged the government to review workers’ purchasing power and strengthen efforts towards a living wage.

Four priorities for an inclusive economy

ActionAid urged the Federal and state governments to focus on four priorities to ensure economic growth delivers tangible benefits to Nigerians.

First, it called for increased investment in reliable electricity and renewable energy to lower production costs, strengthen businesses and create jobs.

Second, it urged the government to improve security in farming communities and along transportation routes to boost agricultural production, protect livelihoods and strengthen food security.

Third, it recommended expanding access to affordable financing for micro, small and medium-sized enterprises, reducing excessive business levies and supporting women-led and youth-led businesses to stimulate domestic production and employment.

Fourth, it called for responsible foreign investment in manufacturing, agriculture, technology and renewable energy, with an emphasis on decent jobs, local value addition and sustainable economic development.

The organisation said these measures should be supported by transparent public spending, stronger investment in education and healthcare, and effective social protection programmes.

Mamedu said Nigerians needed to see tangible improvements in their daily lives rather than rely on headline economic indicators.

“Nigerians cannot continue to hear that the economy is recovering while their purchasing power keeps shrinking,” he said.

He added that economic reforms should ultimately be judged by their ability to reduce poverty, improve incomes, create decent jobs and expand opportunities, particularly for women, young people and marginalised communities.