PRESS STATEMENT FOR IMMEDIATE RELEASE WORLD BANK REPORT: NIGERIA'S 4.2% GDP GROWTH NOT ENOUGH TO TACKLE POVERTY - ACTIONAID NIGERIA

PRESS STATEMENT

FOR IMMEDIATE RELEASE

WORLD BANK REPORT: NIGERIA'S 4.2% GDP GROWTH NOT ENOUGH TO TACKLE POVERTY - ACTIONAID NIGERIA

ActionAid Nigeria calls for double-digit economic growth, single-digit inflation, affordable energy, decent wages and greater accountability for rising government revenues.

12 October 2026 | Abuja, Nigeria. ActionAid Nigeria acknowledges the improvements in Nigeria's economic performance highlighted in the World Bank's October 2026 Nigeria Development Update. However, the organisation is concerned that these gains have not yet translated into meaningful improvements in the living conditions of millions of Nigerians.

According to the World Bank, Nigeria's real Gross Domestic Product (GDP) grew 4.2% in the first half of 2026, up from 3.9% in the same period in 2025. Federation revenues rose 69% in real terms between 2023 and 2025, while state government revenues rose about 93%. External reserves also exceeded $54 billion in September 2026. The report also noted that improved macroeconomic growth has helped stabilise Nigeria's poverty rate for the first time since 2019, effectively halting its upward trajectory. 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.

While these figures indicate macroeconomic improvements, ActionAid Nigeria maintains that growth must be measured by its impact on poverty, inequality, employment and household purchasing power, rather than macroeconomic indicators alone.

Speaking on the report, the Country Director of ActionAid Nigeria, Dr Andrew Mamedu, said:

"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."

Nigeria Needs Faster Growth, Lower Inflation and Reduced Inequality

ActionAid Nigeria believes Nigeria must pursue an ambitious, inclusive economic agenda targeting sustainable double-digit GDP growth of at least 10% in the medium term. Although the reported 4.2% growth represents progress, it remains insufficient for the scale of poverty, unemployment and development challenges confronting the country.

With Nigeria's population growing at approximately 2.1% annually, the reported GDP expansion translates into an indicative real per-capita growth rate of only about 2%, assuming comparable annual growth. This modest improvement underscores the urgency of accelerating productive investment, job creation and income growth.

Inflation also remains a serious concern. Despite moderating from previous highs, headline inflation stood at 15.39% in August 2026. ActionAid Nigeria urges the government to implement policies that can sustainably reduce inflation to single digits, particularly through improved food production, affordable energy, reliable transportation, and increased domestic productivity.

Meanwhile, World Bank estimates suggest that about 63% of Nigerians live below the national poverty line. The latest available World Bank Gini index for Nigeria, at 33.9 in 2022, further underscores the importance of addressing income and consumption inequality. While the figure does not establish that inequality has worsened recently, it reinforces the need to ensure that economic opportunities and resources do not disproportionately benefit those already better positioned to prosper.

Rising Government Revenues Must Deliver Better Public Services

ActionAid Nigeria is particularly concerned about the disconnect between rising public revenues and investment in essential services. Despite the significant increase in government revenues, the World Bank reports that education's share of aggregate state expenditure declined from 14.9% in 2021 to 12.1% in 2025, while health spending remained around 7%.

These figures raise important accountability questions: If government revenues have increased substantially, why are public schools, hospitals and other essential services still struggling? How much of the additional revenue is reaching underserved communities, and what measurable improvements have been achieved?

ActionAid Nigeria calls on federal and state governments to publish accessible expenditure reports showing how increased revenues are being invested in education, healthcare, infrastructure, social protection and poverty reduction. Public spending must be assessed by results, not allocations alone.

Fuel Price Relief Is Welcome, but Comes Too Late and Falls Short of What Nigerians Need

ActionAid Nigeria welcomes the Federal Government's announcement of a 30-day petrol price relief initiative through NNPC Retail, particularly its focus on public transportation. However, this intervention comes too late; months of rising fuel prices have already placed enormous financial pressure on households, businesses, and the wider economy. While the initiative is a step in the right direction, the relief is neither sufficient nor sustainable to address the scale of hardship Nigerians are experiencing. A 30-day intervention cannot adequately cushion citizens against prolonged increases in transportation costs, food prices and other essential expenses. The government must move beyond temporary measures and introduce sustained, targeted interventions that provide meaningful relief, especially for low-income households and vulnerable communities.

Before the Middle East conflict escalated in early 2026, the average retail price of petrol stood at ₦900 per litre in February. By October, petrol was selling at about ₦1,400 per litre at some retail outlets, up by about ₦500 per litre from the earlier national average. These rising costs are increasing transportation fares, food prices and business operating expenses, placing additional pressure on low-income households.

Countries such as South Africa, which introduced temporary fuel levy reductions, and Brazil, which implemented targeted fuel tax relief and diesel subsidies, show that governments can cushion citizens against global energy price shocks. Nigeria must urgently consider more sustained, transparent and targeted interventions, including affordable public transportation, support for vulnerable households, improved electricity supply and investments in alternative energy.

The situation is particularly concerning for workers earning Nigeria's ₦70,000 monthly minimum wage. At ₦1,400 per litre, the entire minimum wage would purchase just 50 litres of petrol, leaving nothing for food, housing, healthcare, education or other necessities.

ActionAid Nigeria therefore calls for a review of workers' purchasing power and stronger measures towards a living wage, alongside policies that reduce the cost of essential goods and services.

Our Demands: Make Nigeria's Economy Work for Poor Nigerians

ActionAid Nigeria urges the Federal Government and state governments to adopt a people-centred economic recovery agenda built around four urgent priorities:

1. Deliver Reliable and Affordable Electricity: Prioritise investment in electricity generation, transmission, distribution and renewable energy to reduce production costs, strengthen industries and create decent jobs.

2. Address Insecurity and Restore Economic Productivity: Protect farming communities, secure transportation routes and enable farmers, traders and businesses to operate safely, thereby improving food security and economic activity.

3. Support Micro, Small and Medium-Sized Enterprises: Expand access to affordable financing, reduce excessive business levies and provide targeted support for women-led and youth-led enterprises to stimulate domestic production and employment.

4. Attract Productive Foreign Direct Investment: Create an enabling environment for responsible investment in manufacturing, agriculture, technology and renewable energy, with clear requirements for decent job creation, local value addition and economic development.

Beyond these priorities, ActionAid Nigeria demands greater investment in education, healthcare, and social protection, along with transparent public expenditure tracking and measurable poverty-reduction targets.

Reiterating the organisation's position, Dr Andrew Mamedu stated:

"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."

ActionAid Nigeria reiterates that economic growth is a means to improving people's lives, not an end. The government must move beyond celebrating improved indicators and show how its policies reduce poverty, improve incomes, and create opportunities for all Nigerians, particularly women, young people, and marginalised communities.

The question remains: If Nigeria's economy is growing and government revenues are rising, when will ordinary Nigerians begin to feel the benefits?

ENDS

Andrew Mamedu

Country Director, ActionAid Nigeria

For media enquiries: Communications Unit, ActionAid Nigeria