NIGERIA’S 4.43% GDP GROWTH DRAWS LABOUR BACKLASH OVER RISING COST OF LIVING

Nigeria’s latest economic growth figures have triggered mixed reactions, with organised labour and employers warning that stronger Gross Domestic Product performance has yet to translate into meaningful improvements in the living conditions of ordinary Nigerians and the operating environment for businesses.

The Federal Ministry of Finance reported that the economy expanded by 4.43 per cent year-on-year in the second quarter of 2026, compared with 4.23 per cent recorded in the corresponding period of 2025 and 3.89 per cent in the first quarter of this year. The latest performance also pushed real GDP growth for the first half of 2026 to 4.16 per cent, up from 3.68 per cent in the same period of 2025.

The government described the expansion as increasingly broad-based, noting that 27 economic subsectors recorded real growth of more than three per cent during the quarter, compared with 23 subsectors in the second quarter of 2025. Manufacturing grew by 3.24 per cent, agriculture expanded by 4.39 per cent, while the services sector, which remains the largest component of economic activity, recorded 4.60 per cent growth.

The Ministry of Finance also linked part of the improvement to the relative stability and appreciation of the naira. According to the ministry, the currency gained more than 12 per cent between the first half of 2025 and the corresponding period of 2026, contributing to an estimated 17 per cent increase in the size of Nigeria’s economy when measured in US dollar terms.

Government officials said the latest figures strengthened Nigeria’s prospects of achieving the administration’s ambition of building a $1 trillion economy by 2030. They also argued that continued macroeconomic stability, stronger production and improved investor confidence could help ensure that the expansion eventually translates into better outcomes for households.

However, organised labour has challenged the celebratory tone surrounding the figures, arguing that GDP growth alone does not adequately capture the economic realities confronting Nigerian workers and families.

The Nigeria Labour Congress described the government’s growth narrative as a “paper tiger disguised as progress,” questioning whether the reported expansion had produced any substantial improvement in purchasing power, living standards or access to essential services.

The labour centre argued that many households continue to face high living costs, declining real incomes and inadequate social services despite the reported improvement in macroeconomic indicators. It called for increased public investment in infrastructure and social services, stronger protection for domestic industries and wages that reflect prevailing economic realities.

The NLC also demanded measures capable of reducing the cost of essential commodities while improving Nigerians’ access to education, housing, healthcare, transportation, water, sanitation and hygiene services.

Similarly, the Campaign for Democratic and Workers’ Rights criticised the government's presentation of the economic figures. Its National Chairperson, Rufus Olusesan, argued that the benefits expected from the removal of the petrol subsidy in 2023 had not been sufficiently felt by workers and ordinary Nigerians.

Olusesan maintained that the subsidy removal had been presented as a difficult reform whose benefits would eventually support economic development and improve workers’ welfare. However, he argued that Nigerians had instead endured significant hardship through rising prices and weakened purchasing power.

He also pointed to the depreciation of the naira and its effect on household incomes, arguing that economic rankings and GDP statistics would have limited significance if ordinary citizens did not experience corresponding improvements in their daily lives.

The Nigeria Employers’ Consultative Association adopted a more measured position, describing the 4.43 per cent growth as encouraging while cautioning against interpreting it as evidence that Nigeria had achieved a full economic recovery.

NECA noted that the economy had strengthened for the second consecutive quarter and that the latest expansion represented the strongest quarterly growth since the third quarter of 2024. However, the employers’ body stressed that businesses were still facing significant structural difficulties.

Among the challenges identified were high energy costs, inadequate infrastructure, limited access to affordable credit, weak consumer purchasing power and rising production expenses. NECA therefore questioned whether the headline GDP figure was translating into stronger businesses and improved welfare for households.

The employers’ association particularly raised concerns about the industrial sector, warning that unresolved structural problems could threaten the sustainability of the recovery. It stressed that economic growth must be accompanied by improvements in the productive capacity of businesses and a stronger operating environment.

The latest debate reflects a broader disagreement over how Nigeria’s economic recovery should be measured. While government figures point to stronger output, increased sectoral activity and improved macroeconomic indicators, labour groups insist that the real test of economic progress should be whether households can afford food, transportation, housing, healthcare and other necessities.

For the recovery to become more inclusive, stakeholders have called for policies that move beyond headline GDP figures and address the pressures affecting businesses and workers directly. Lower production costs, stronger infrastructure, improved purchasing power, affordable credit and better social services are considered crucial to ensuring that economic expansion produces tangible benefits.

Nigeria’s 4.43 per cent second-quarter growth therefore represents both an encouraging economic indicator and a challenge for policymakers. The government now faces the task of converting improved macroeconomic performance into broader prosperity, while labour and business groups continue to demand evidence that the recovery is reaching ordinary Nigerians.