By Stella Odueme
ActionAid Nigeria has urged the Federal Government to adopt more ambitious economic policies, warning that Nigeria’s 4.2 per cent Gross Domestic Product (GDP) growth in the first half of 2026 is insufficient to significantly reduce poverty and improve citizens’ living conditions.
The organisation, while acknowledging the improvement in the country’s economic performance reported in the World Bank’s October 2026 Nigeria Development Update, said millions of Nigerians were yet to feel the benefits of the recovery amid rising living costs, unemployment and declining purchasing power.
ActionAid Nigeria, Country Director, Dr Andrew Mamedu, on Monday, called for sustained double-digit economic growth, single-digit inflation, affordable energy, improved workers’ wages and greater accountability in the management of public revenues.
According to ActionAid Nigeria, the country’s real GDP grew by 4.2 per cent in the first half of 2026, compared with 3.9 per cent recorded during the corresponding period in 2025.
It further 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. Nigeria’s external reserves also exceeded $54 billion in September 2026.
Despite these improvements, the organisation argued that economic progress should be measured by its impact on poverty, inequality, employment and household welfare rather than government revenue and macroeconomic indicators alone.
Mamedu said the country’s economic recovery would remain incomplete unless ordinary Nigerians experienced meaningful improvements in their daily lives.
He maintained that the ultimate measure of economic success should be the number of people lifted out of poverty, rather than the volume of revenue accruing to the government.
ActionAid Nigeria advocated sustained GDP growth of at least 10 per cent in the medium term, noting that the current growth rate was inadequate to address the country’s development challenges, particularly given its rapidly expanding population.
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 expressed concern over inflation, which stood at 15.39 per cent in August 2026, urging the government to pursue policies capable of bringing it down sustainably to single digits.
The organisation identified increased food production, affordable energy, efficient transportation and improved domestic productivity as critical measures for easing inflationary pressures.
Citing World Bank estimates that approximately 63 per cent of Nigerians live below the national poverty line, ActionAid Nigeria called for economic policies that would ensure a fairer distribution of resources and opportunities.
The organisation also questioned whether the increase in government revenues was translating into adequate funding for essential public services.
It cited 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.
It therefore urged federal and state governments to publish accessible expenditure reports showing how increased revenues were being channelled into education, healthcare, infrastructure, social protection and poverty reduction.
According to the organisation, public spending should be assessed based on measurable outcomes rather than budgetary allocations alone.
On the rising cost of living, ActionAid Nigeria acknowledged 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 insufficient to address the sustained increase in household expenses.
It said petrol prices had risen from an average of ₦900 per litre in February 2026 to approximately ₦1,400 per litre at some retail outlets in October, contributing to higher transportation fares, food prices and business operating costs.
The organisation called for sustained and targeted relief measures, including affordable public transportation, assistance for vulnerable households, improved electricity supply and greater investment in alternative energy sources.
It also raised concerns over the purchasing power of workers earning the national minimum wage of ₦70,000 monthly.
ActionAid Nigeria observed that at a petrol price of ₦1,400 per litre, the monthly minimum wage could purchase only 50 litres, leaving workers with no money from that amount to meet other essential needs, including food, housing, healthcare and education.
It called for stronger measures to improve workers’ purchasing power and advance the provision of a living wage.
To make economic growth more beneficial to Nigerians, ActionAid Nigeria outlined four priority areas for federal and state governments.
The organisation called for reliable and affordable electricity through investments in power generation, transmission, distribution and renewable energy.
It also urged the government to tackle insecurity, particularly in farming communities, to restore agricultural productivity and strengthen food security.
The third priority involves supporting micro, small and medium-sized enterprises through affordable financing and reduced business levies to encourage growth, investment and employment.
The organisation further advocated attracting productive foreign direct investment into manufacturing, agriculture, technology and renewable energy to stimulate local production, value addition and sustainable job creation.
Beyond these measures, it called for increased investment in education, healthcare and social protection, alongside transparent monitoring of public expenditure and the adoption of measurable poverty-reduction targets.
Reiterating the organisation’s position, Mamedu said Nigerians deserved 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 stressed that citizens had the right to demand better public services and greater accountability, adding that the success of economic reforms should ultimately be determined by their impact on poverty reduction.
ActionAid Nigeria maintained that economic growth should serve as a means of improving living standards, particularly for women, young people and marginalised communities.
The organisation challenged the government to demonstrate how its economic policies were translating into higher incomes, improved access to essential services and expanded opportunities for Nigerians.
