GDP growth fails to lift living standards, unions warn

Labour unions and employers have rejected the Federal Government's celebration of Nigeria's 4.43 per cent economic growth in the second quarter of 2026, arguing that the expansion has not improved living standards, purchasing power or working conditions for Nigerians.

The Nigeria Labour Congress (NLC) and the Campaign for Democratic and Workers’ Rights (CDWR) dismissed the latest GDP figures, while the Nigeria Employers’ Consultative Association (NECA) warned that the numbers should not be mistaken for a full economic recovery.

Government hails Q2 numbers

The Federal Ministry of Finance said Nigeria's real GDP grew by 4.43 per cent year-on-year in Q2 2026, up from 4.23 per cent in Q2 2025 and 3.89 per cent in Q1 2026. That brought first half growth to 4.16 per cent, compared with 3.68 per cent in the same period of 2025.

The ministry said 27 economic subsectors recorded real growth above three per cent in Q2, up from 23 in Q2 2025. Manufacturing grew by 3.24 per cent, agriculture by 4.39 per cent, while the largest component of the economy expanded by 4.60 per cent.

It also noted that the naira appreciated by more than 12 per cent between H1 2025 and H1 2026, contributing to an approximately 17 per cent expansion of the economy in US dollar terms. The ministry said the trend puts Nigeria on course for the Federal Government's target of a $1 trillion economy by 2030.

Labour calls growth a paper tiger

The NLC rejected the government's narrative, describing it in a reaction titled 'The Ministry’s “Growth” Charade: A Paper Tiger Disguised as Progress' as a “paper tiger disguised as progress”. It questioned whether the reported expansion had any meaningful impact on ordinary Nigerians.

The labour centre said the government was celebrating abstract percentages while workers and households continued to face high living costs, declining purchasing power and inadequate social protections. It demanded massive public investment in infrastructure and social services, protection of local industries from damaging imports, living wages that reflect economic realities, and measures to make essential commodities affordable. It also called for improved access to education, housing, healthcare, transportation, water, sanitation and hygiene services.

CDWR National Chairperson Rufus Olusesan described the growth narrative as a political strategy designed to sustain the ruling elite in power. He argued that the removal of petrol subsidy in 2023 was justified by a promise that saved resources would go into economic development and better working conditions. Three years later, he said, workers and the wider masses had instead been subjected to “needless and untold hardship.”

“This is a political statement orchestrated by the ruling elite to perpetuate themselves in office,” Olusesan said.

He pointed to widespread poverty, weakened purchasing power and continued naira depreciation as evidence. He cited the exchange rate between the Ghanaian cedi and the naira as a sign of the currency's loss of value, arguing that Nigeria's ranking among Africa's largest economies would remain theoretical if citizens did not see real improvements in living conditions.

Employers say recovery fragile

NECA said the 4.43 per cent figure was encouraging and showed the economy was gradually gaining momentum, but stressed that the recovery remained fragile. It noted that growth had strengthened for the second consecutive quarter and was the strongest since Q3 2024.

However, NECA said the headline growth figure presents only part of the picture. Businesses across sectors still battle high energy costs, inadequate infrastructure, limited access to affordable credit, weak purchasing power and rising production costs.

“A 4.43 per cent expansion does not automatically mean that businesses are thriving or households are better off,” the employers' body said. It singled out the industrial sector as a particular concern, warning that unresolved structural challenges there could undermine the sustainability of the recovery.