4.2% GDP growth insufficient to cut poverty – ActionAid

ActionAid Nigeria has said Nigeria’s 4.2 per cent Gross Domestic Product growth in the first half of 2026 is insufficient to reduce poverty, calling for double-digit economic growth, single-digit inflation and greater accountability for rising government revenues.

The organisation stated this in a statement on Monday in reaction to the World Bank’s October 2026 Nigeria Development Update, which reported that the country’s real 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.

The World Bank also reported that federation revenues increased by 69 per cent in real terms between 2023 and 2025, while state government revenues rose by about 93 per cent. External reserves also exceeded $54bn in September 2026.

According to the bank, the improved economic performance helped stabilise Nigeria’s poverty rate for the first time since 2019.

ActionAid, however, said stabilising poverty should not be mistaken for reducing it, particularly as millions of Nigerians continued to grapple with rising living costs and declining purchasing power.

“While this marks a significant development, stabilising poverty is not the same as reducing it, particularly when millions of Nigerians continue to struggle with rising living costs and declining purchasing power,” the organisation said.

The Country Director of ActionAid Nigeria, Dr Andrew Mamedu, said economic growth should translate into improved living conditions rather than remain confined to official statistics.

“We acknowledge the improvements in Nigeria’s economic indicators, but economic growth must mean more than impressive figures in government reports. When revenues rise, but families cannot afford food, transportation, healthcare and education, we must ask who benefits from that growth,” he said.

Mamedu added, “The true measure of economic progress is not how much money government generates, but how many Nigerians are lifted out of poverty.”

The organisation called for an inclusive economic agenda targeting 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 poverty, unemployment and development challenges.

It noted that with Nigeria’s population growing by about 2.1 per cent annually, the 4.2 per cent GDP expansion translated into indicative real per capita growth of only about two per cent.

On inflation, ActionAid said the headline rate stood at 15.39 per cent in August 2026, despite moderating from previous highs.

It urged the Federal Government to pursue single-digit inflation through increased food production, affordable energy, reliable transportation and improved domestic productivity.

The organisation also questioned the relationship between rising government revenues and public investment in essential services.

It said education’s share of aggregate state expenditure fell from 14.9 per cent in 2021 to 12.1 per cent in 2025, while health spending remained at about seven per cent.

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“If government revenues have increased substantially, why are public schools, hospitals and other essential services still struggling?” it asked.

ActionAid called on federal and state governments to publish accessible expenditure reports showing how increased revenues were being spent.

“Public spending must be assessed by results, not allocations alone,” it stated.

On the Federal Government’s 30-day petrol price relief initiative through NNPC Retail, the organisation described the intervention as welcome but belated, arguing that it would not adequately address the sustained rise in transportation and other essential costs.

“A 30-day intervention cannot adequately cushion citizens against prolonged increases in transportation costs, food prices and other essential expenses,” it said.

ActionAid said petrol, which sold for an average of N900 per litre in February before the escalation of the Middle East conflict, was selling for about N1,400 per litre at some outlets.

It argued that a worker earning the N70,000 minimum wage could purchase only 50 litres of petrol with the entire monthly salary, leaving nothing for food, housing, healthcare and other necessities.

The organisation called for a review of workers’ purchasing power and stronger measures to ensure that wages reflected the cost of living.

It also urged governments to adopt a people-centred economic recovery agenda focused on reliable and affordable electricity, tackling insecurity to restore productivity, supporting micro, small and medium-sized enterprises, and attracting productive foreign direct investment.

Mamedu said Nigerians needed tangible improvements in their living conditions rather than assurances that the economy was recovering.

“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, “With government revenues rising, citizens have every right to demand better services and greater accountability.”