Market News

By : Gloria Nwafor

Nigeria Labour Congress (NLC) and the Campaign for Democratic and Workers’ Rights (CDWR) have rejected the Federal Government’s celebration of 4.43 per cent economic growth in the second quarter of 2026, arguing that the reported expansion failed to translate into improved living standards, purchasing power and working conditions for Nigerians.

Similarly, the Nigeria Employers’ Consultative Association (NECA) cautioned that the 4.43 per cent GDP growth should not be interpreted as evidence of full economic recovery, since the industrial sector and businesses still grapple with significant structural challenges.

The Federal Ministry of Finance stated yesterday that Nigeria’s real GDP grew by 4.43 per cent year-on-year in Q2 2026, compared with 4.23 per cent in Q2 2025 and 3.89 per cent in Q1 2026.

The ministry said the performance raised real GDP growth for the first half of 2026 to 4.16 per cent, from 3.68 per cent recorded in the corresponding period of 2025.

It also highlighted what it described as increasingly broad-based expansion, noting that 27 economic subsectors recorded real growth above three per cent in Q2, compared with 23 subsectors in the same quarter of 2025.

Manufacturing, it said, 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.

The ministry further said the naira’s more than 12 per cent appreciation between H1 2025 and H1 2026 had contributed to an approximately 17 per cent expansion of the economy in United States (U.S.) dollar terms.

It said the trajectory placed Nigeria on course towards the Federal Government’s target of a $1 trillion economy by 2030 and could strengthen the country’s position among Africa’s largest economies.

But the NLC dismissed the celebration, describing the government’s growth narrative as a “paper tiger disguised as progress” and questioning whether the reported expansion had any meaningful impact on ordinary Nigerians.

In its reaction entitled, ‘The Ministry’s “Growth” Charade: A Paper Tiger Disguised as Progress’, the labour centre said the government was celebrating abstract percentages while Nigerian workers and households continued to grapple with high living costs, declining purchasing power and inadequate social 

services
.

It called for massive public investment in infrastructure and social services, protection of local industries from damaging imports, living wages that reflect prevailing economic realities and measures to make essential commodities affordable.

The Congress also demanded improved access to education, housing, healthcare, transportation, water, sanitation and hygiene services.

SIMILARLY, the National Chairperson of CDWR, Rufus Olusesan, described the Federal Government’s growth narrative as a political strategy designed to sustain the ruling elite in power.

Olusesan argued that the removal of petrol subsidy in 2023 was justified by the promise that resources saved would be redirected towards economic development and improved working conditions for the working population.

He, however, said that three years after the subsidy removal, Nigerian 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,” he said.

According to him, the current economic situation is characterised by widespread poverty and weakened purchasing power, while the naira’s depreciation placed additional pressure on households and businesses.

He cited the exchange rate between the Ghanaian cedi and the naira as an indication of the extent of the currency’s loss of 

value
, arguing that Nigeria’s ranking among Africa’s largest economies would remain largely theoretical if ordinary citizens did not experience corresponding improvements in their living conditions.

NECA, while reacting to the latest GDP report, said the figure was encouraging and indicated that the economy was gradually gaining momentum, but stressed that the recovery remained fragile.

The association noted that growth had strengthened for the second consecutive quarter, with the 4.43 per cent expansion representing the strongest quarterly growth recorded since Q3 2024.

It, however, said the headline growth figure presented only part of the economic picture, as businesses across sectors continued to contend with high energy costs, inadequate infrastructure, limited access to affordable credit, weak purchasing power and rising production costs.

According to NECA, the central question is whether the reported GDP growth is translating into improved operating conditions for businesses and better living standards for households.

“A 4.43 per cent expansion does not automatically mean that businesses are thriving or households are better off,” the employers’ body said.

The performance of the industrial sector remained a particular concern, it noted, arguing that the sector’s challenges could undermine the sustainability of the emerging recovery if they were not urgently addressed.