The ActionAid Nigeria (AAN) has expressed concern over the widening gap between Nigeria’s reported economic growth and the harsh living conditions of citizens.
The AAN Country Director, Andrew Mamedu, who stated this on Saturday in Abuja described the situation as a ‘national poverty crisis’.
He noted: “Although macroeconomic indicators suggest that Nigeria may be on a path toward recovery with GDP growth rates of between 3.13 and 3.9 per cent stated that the benefits of such growth have not translated into real improvements in citizens livelihoods.”
Mamedu added that Nigeria’s budget has risen sharply since independence, from about $3.1 billion (N299 billion) in 1999 to $36 billion (N54.9 trillion) in 2025, yet, poverty rates have also climbed from 42.7 per cent of 123 million Nigerians in 1999 to 52.5per cent of 230 million people today.
He said: “The latest World Bank report reinforces the lived realities of Nigerians, confirming that poverty remains widespread and persistent.
“Although macroeconomic indicators suggest that Nigeria may be on a path toward recovery with GDP growth rates of between 3.13 per cent and 3.9 per cent in subsequent quarters of 2025.
“The benefits of such growth have not translated into real improvements in citizens’ livelihoods.
“Inflation may have eased marginally to 20.12 per cent in August 2025 from 21.88 per cent in July, while food and core inflation have also improved moderately; prices remain painfully high for the average Nigerian.”
Mamedu emphasised that unemployment dropped from its 2020 peak of 10.85 per cent to 5.05 per cent in 2024, however, this statistical progress has not been felt by ordinary Nigerians.
“Historical analysis of the minimum wage reveals the dramatic erosion of economic value for the Nigerian worker. The first official, unified National Minimum Wage was established in 1981 at N125 per month, which was equivalent to approximately £100 GBP at the prevailing exchange rate.
“By contrast, the current national minimum wage of N70,000 (officially adopted in 2024/2025) is worth approximately £35.63 GBP today (using the interbank exchange rate of £1≈N1964.51 NGN).
“This comparison shows that the official minimum wage has lost nearly two thirds of its value in GBP terms since 1981. This stark disparity shows the failure of current wages to keep pace with cost of living and historical value.
“Amidst these reforms, Nigeria continues to rely heavily on borrowing. The World Bank is expected to approve $750 million in loans to Nigeria for strengthening healthcare, security and building resilient digital infrastructure,” Mamedu said.
He said that although the World Bank projects that Nigeria’s public debt-to-GDP ratio would decline for the first time in a decade from 42.9 per cent to 39.8 per cent, the sustainability of such debt amid poor fiscal accountability remains questionable.
Mamedu also said that, “Nigeria’s economic indicators may suggest growth, but our people are not feeling it. When over half the population lives below the poverty line despite trillions spent in the name of development, it means something is fundamentally broken. Fiscal growth without human progress is failure.”