Chairman of the Alliance for Economic Research and Ethics LTD/GTE, Dele Kelvin Oye, has said that Nigeria’s much-celebrated economic growth does not reflect the daily reality of millions of its citizens, noting that the country is experiencing a troubling paradox where GDP rises without tangible improvements in lives.

Speaking at the Lagos Country Club Business Forum 2.0 in Lagos, Oye, who is the Life Vice President and 22nd National President, NACCIMA, said Nigeria was a nation of immense potential, often applauded for its expanding Gross Domestic Product (GDP), but “rising prices, unstable employment, and the challenges of running businesses in a volatile environment paint a starkly different picture.”

Referencing a recent economic data showing 3.98 per cent GDP growth in the first quarter of 2025, driven mainly by the non-oil sector, Oye explained that the widening disconnect between macroeconomic indicators and lived realities represents “the Nigerian puzzle of growth that leaves people behind.”

He said: “Nigeria is a nation of immense potential, often celebrated for its growing Gross Domestic Product (GDP) and expanding economy. Yet, for millions of Nigerians, this narrative feels disconnected from their daily realities. Rising prices, unstable employment, and the challenges of running businesses in a volatile environment paint a starkly different picture.

“This paradox of ‘growth without progress’ is the defining economic challenge of our time. This paper seeks to bridge the gap between the optimistic economic data and the lived experiences of Nigerians. It provides a diagnostic view of the underlying issues, evaluates policy choices, and proposes a clear roadmap toward a future in which economic growth translates into tangible improvements in the lives of all Nigerians.

“The Nigerian Puzzle of Growth That Leaves People Behind Despite reported GDP growth of 3.98% in the 2025 quarter, driven by the non-oil sector, millions of Nigerians continue to struggle with inflation, unemployment, and poverty.”

Citing the World Bank’s 2025 report that revealed that over 139 million Nigerians live in poverty, Oye said the report highlights the stark disparity between economic growth and the quality of life of the majority of our citizens, adding: “This disconnect is a result of structural issues that have plagued the economy for decades. The economic engine may be running, but it is leaving most of its passengers behind, adding: “The challenge lies in transforming growth from a mere statistic into tangible improvements in the lives of Nigerians.”

On the solution to the crisis, Oye, who is also the Chairman of the Nigeria-Turkiye Business Council, noted: “To address the rising cost of living, we must first understand the root causes of Nigeria’s persistent inflation. This economic ailment is driven by a ‘three-headed monster,’ namely:

“Demand-Pull Inflation: Excess liquidity in the economy, fueled by public-sector deficits and heavy borrowing, has led to too much money chasing too few goods. This imbalance has stoked inflationary pressures, making everyday goods and services increasingly expensive.

“Cost-Push Inflation: The cost of producing goods in Nigeria is exorbitant due to an unstable exchange rate, unreliable power supply, poor infrastructure, and overregulation. These factors force businesses to pass high costs onto consumers, further exacerbating inflation

“Involution: There is a third arm called involution. It is a general fall in prices of goods due to unhealthy competition without real growth or structural improvement.”