ActionAid Nigeria has said Nigeria’s 4.2 per cent economic growth is insufficient to reduce poverty, urging the Federal Government to pursue faster economic growth, lower inflation, affordable energy, decent wages and greater accountability for public revenue.
The organisation made the position known in a statement issued on October 12, 2026, in response 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, compared with 3.9 per cent in the corresponding period of 2025. Federation revenues also increased by 69 per cent in real terms between 2023 and 2025, while state government revenues rose by about 93 per cent. The country’s external reserves exceeded $54 billion in September 2026.
The World Bank report further indicated that economic improvements had helped stabilise Nigeria’s poverty rate for the first time since 2019.
However, ActionAid Nigeria said stabilising poverty did not mean reducing it, noting that millions of Nigerians continued to struggle with rising living costs and declining purchasing power.
The organisation’s Country Director, Dr Andrew Mamedu, said economic performance should be assessed by its impact on people’s lives rather than government revenue and other macroeconomic indicators.
“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. The true measure of economic progress is not how much money government generates, but how many Nigerians are lifted out of poverty,” Mamedu said.
ActionAid Wants Double-Digit Economic Growth
ActionAid Nigeria said the country needed to pursue sustainable double-digit GDP growth of at least 10 per cent in the medium term to address poverty, unemployment and other development challenges.
It noted that although the reported 4.2 per cent growth represented an improvement, it remained inadequate given the scale of Nigeria’s economic and social challenges.
With the country’s population growing by approximately 2.1 per cent annually, the organisation said the pace of economic expansion underscored the need for greater productive investment, job creation and income growth.
The organisation also identified inflation as a major concern, citing the headline inflation rate of 15.39 per cent recorded in August 2026.
It said the government needed to introduce measures capable of reducing inflation to single digits, particularly through improved food production, affordable energy, reliable transportation and increased domestic productivity.
ActionAid Nigeria also cited World Bank estimates that about 63 per cent of Nigerians live below the national poverty line.
It added that Nigeria’s latest available Gini index, recorded at 33.9 in 2022, highlighted the importance of ensuring that economic opportunities and resources were distributed more equitably.
The organisation noted that the figure did not establish whether inequality had worsened recently but said it reinforced the need to address disparities in income and access to economic opportunities.
Rising Government Revenue Must Improve Public Services
The organisation also expressed concern over the gap between rising government revenue and spending on essential public services.
According to the World Bank report, 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 Nigeria questioned why public schools, hospitals and other essential services continued to face challenges despite the significant increase in government revenue.
It called on federal and state governments to publish accessible expenditure reports showing how additional revenue was being invested in education, healthcare, infrastructure, social protection and poverty reduction.
The organisation said public spending should be measured by its results, not allocations alone, adding that citizens needed clear information on how government policies and spending improved their living conditions.
ActionAid Faults Temporary Petrol Price Relief
ActionAid Nigeria welcomed the Federal Government’s announcement of a 30-day petrol price relief initiative through NNPC Retail, particularly its focus on public transportation.
However, it described the intervention as insufficient to address the prolonged financial pressure caused by rising fuel prices, transportation fares and the cost of essential goods.
The organisation said temporary relief measures could not adequately protect households and businesses from sustained increases in living costs, calling for more targeted and lasting interventions for low-income earners and vulnerable communities.
It noted that petrol averaged about ₦900 per litre in February 2026, before rising to approximately ₦1,400 per litre at some retail outlets in October.
According to the organisation, the increase of about ₦500 per litre had added to transportation costs, food prices and business operating expenses.
ActionAid Nigeria pointed to fuel levy reductions in South Africa and targeted fuel tax relief and diesel subsidies in Brazil as examples of measures governments had adopted to cushion citizens against global energy price shocks.
It said Nigeria should consider sustained and transparent interventions, including affordable public transportation, support for vulnerable households, improved electricity supply and investment in alternative energy.
The organisation also highlighted the pressure on workers earning the national minimum wage of ₦70,000 monthly.
At a petrol price of ₦1,400 per litre, it said the entire monthly minimum wage would purchase only 50 litres of petrol, leaving nothing for food, housing, healthcare, education and other necessities.
ActionAid Nigeria called for a review of workers’ purchasing power and stronger measures towards a living wage, alongside policies to reduce the cost of essential goods and services.
Affordable Electricity, Security and Business Support
To make economic growth more beneficial to ordinary Nigerians, ActionAid Nigeria outlined priorities for the federal and state governments.
The organisation called for reliable and affordable electricity, with greater investment in power generation, transmission, distribution and renewable energy to reduce production costs, improve industrial activity and create decent jobs.
It also identified insecurity as a barrier to economic productivity, urging the government to protect farming communities, secure transportation routes and enable farmers, traders and businesses to operate safely.
On small businesses, the organisation called for improved access to affordable financing, reduced excessive business levies and targeted assistance for women-led and youth-led enterprises.
It further advocated an enabling environment for productive foreign direct investment in manufacturing, agriculture, technology and renewable energy.
According to ActionAid Nigeria, such investments should promote decent jobs, local value addition and broader economic development.
The organisation also called for increased investment in education, healthcare and social protection, alongside transparent public expenditure tracking and measurable poverty-reduction targets.
Nigerians Need to Feel the Benefits of Economic Recovery
Reiterating the organisation’s position, Mamedu said the benefits of economic recovery must be evident in the daily lives of citizens.
“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. With government revenues rising, citizens have every right to demand better services and greater accountability. Economic reforms must ultimately be judged by how many people they lift out of poverty, not how many billions they add to government accounts,” he said.
ActionAid Nigeria maintained that economic growth should be a means of improving living conditions rather than an end in itself.
It said the government needed to demonstrate how its economic policies were reducing poverty, improving incomes and creating opportunities, particularly for women, young people and marginalised communities.
The organisation said the central issue remained whether the reported economic gains and increased government revenues would translate into better living standards for ordinary Nigerians.
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