Nigeria’s Economy Expands, But Workers & Businesses Still Feel The Pressure
By FIDELUS ZWANSON
NIGERIA’S latest economic growth has triggered mixed reactions, with labour and employers’ groups warning that the expansion has yet to translate into better living conditions for citizens.
The Nigeria Labour Congress (NLC) and Campaign for Democratic and Workers’ Rights (CDWR) criticised the Federal Government’s celebration of the 4.43 per cent GDP growth recorded in the second quarter of 2026.
The Nigeria Employers’ Consultative Association (NECA) also urged caution, saying the figure does not yet amount to a full economic recovery.
GDP Records Stronger Growth
The Federal Ministry of Finance said real GDP grew by 4.43 per cent year-on-year in Q2 2026.
The figure surpassed the 4.23 per cent recorded in Q2 2025 and the 3.89 per cent recorded in Q1 2026.
Consequently, first-half growth rose to 4.16 per cent, compared with 3.68 per cent during the same period last year.
The ministry also said 27 economic subsectors recorded growth above three per cent during the quarter.
Manufacturing grew by 3.24 per cent. Agriculture expanded by 4.39 per cent, while services, the largest component of the economy, grew by 4.60 per cent.
The ministry further linked the naira’s more than 12 per cent appreciation between the first halves of 2025 and 2026 to an estimated 17 per cent expansion of the economy in dollar terms.
It said the trend could support Nigeria’s ambition of reaching a $1 trillion economy by 2030.
NLC Questions Impact on Households
The NLC, however, rejected the celebratory narrative.
The labour centre argued that stronger GDP figures mean little if workers and households continue to face high living costs and declining purchasing power.
It called for increased public investment in infrastructure and social services.
The union also demanded stronger protection for local industries, living wages and measures to make essential goods more affordable.
It further sought better access to education, housing, healthcare, transportation, water, sanitation and hygiene.
CDWR Criticises Economic Reforms
CDWR National Chairperson Rufus Olusesan also challenged the government’s assessment of the economy.
He argued that the removal of the petrol subsidy in 2023 came with promises of economic development and improved working conditions.
Three years later, he said, workers and other Nigerians were still facing severe economic hardship.
Olusesan also pointed to weakened purchasing power and pressure from the naira’s value.
He argued that Nigeria’s position among Africa’s largest economies would remain largely theoretical unless ordinary citizens experienced better living conditions.
NECA Sees Fragile Recovery
NECA offered a more cautious assessment.
The employers’ body said the 4.43 per cent growth showed that the economy was gaining momentum.
It noted that the latest expansion represented the strongest quarterly growth since Q3 2024.
Nevertheless, NECA said businesses still face high energy costs, inadequate infrastructure, expensive credit, weak consumer demand and rising production costs.
The association therefore warned that GDP growth alone cannot prove that businesses are thriving or households are better off.
It said the industrial sector requires urgent attention to sustain the emerging recovery.
The latest figures thus present a mixed picture: Nigeria’s economy is expanding, but labour and business groups want that growth to translate into jobs, stronger incomes, improved purchasing power and better living standards.
