ActionAid Nigeria has expresses deep concern over the current state of the nation, asking the federal government to take decisive steps to diversify revenue sources and improve domestic resource mobilisation.
A statement issued on Monday by the Board of Directors of ActionAid Nigeria following its 55th meeting, expressed deep concern over the current state of the nation, which has been marked by escalating political crisis, economic challenges, and a severe international funding downturn.
The statement signed by the Chair, ActionAid Nigeria’s Board of Directors, Ms. Rabi Isma said: “From widespread kidnappings and extrajudicial killings to unchecked violence in communities across the country, particularly in Edo, Plateau, Benue, and Niger States – the persistent failure of Nigeria’s centralised security architecture continues to endanger lives and erode public trust in the state’s capacity to protect its citizens.
“The political turmoil in Rivers State, marked by constitutional violations, now threatens the stability of Nigeria’s democratic institutions. Additionally, the suspension of a sitting Senator for up to six months, and without an independent investigation into her allegations of sexual harassment against the Senate President, reflects systemic gender-based discrimination in politics. In the economic sphere, Nigeria faces severe fiscal strain with its ₦54.99 trillion 2025 budget.
“Yet, amidst this economic distress, banks continue to post record profits, driven largely by levies, transaction fees, and forex gains which exposes a troubling disconnect between the financial sector’s success and the harsh economic realities facing ordinary Nigerians. Meanwhile, the abrupt withdrawal of over $60 billion in foreign aid has also severely impacted health services, agriculture, and social welfare programmes. Adding to this, the World Bank’s April 2025 Africa’s Pulse report forecasts a 3.6 percentage point increase in Nigeria’s poverty rate by 2027, underscoring the deepening economic crisis. Despite a statistical decline in inflation, the cost-of-living crisis remains severe, with food, fuel, and transportation costs soaring.”
Amid the pressing challenges, the board of directors acknowledged the recent upgrade of Nigeria’s sovereign credit rating by Fitch Ratings from 'B-' to 'B', stating that this reflects improvements in policy credibility and reforms such as exchange rate liberalisation and tighter monetary policies, signaling potential for better economic stability.
The statement added that: “However, the fuel subsidy removal remains contentious because it disproportionately impacts vulnerable groups. At the same time, we commend the government for supporting the Reserved Seats for Women Bill, a vital step toward addressing the underrepresentation of women in politics.”
The Board of Directors meanwhile recommended that: “The President must immediately demonstrate leadership by upholding the rule of law and ensuring that all actions taken in response to the crisis in Rivers State strictly adhere to constitutional provisions. The unconstitutional approval of the state of emergency in Rivers State sets a dangerous precedent that threatens Nigeria’s democracy. The National Assembly must urgently rectify this violation by providing clear, indisputable evidence of a two-thirds majority vote. The President must also call to order the Sole Administrator, whose controversial appointments and disregard for court orders further undermine democratic institutions. The President's prompt intervention is essential to restore constitutional order and prevent further erosion of democratic governance in Rivers State.
“The federal government must take decisive steps to diversify revenue sources and improve domestic resource mobilisation. This includes implementing progressive, gender-responsive tax reforms, intensifying efforts to curb illicit financial flows, and ensuring better transparency in public finance management. To shield vulnerable populations from the immediate consequences of aid reductions, we reiterate that there must be increased investment in social protection programmes to ensure continued access to healthcare, nutrition, and essential services. We also recommend that local manufacturing and food production systems be strengthened to reduce dependency on external agricultural assistance and insecuring food sovereignty.
“National and State Assemblies must prioritise an immediate institutional reform to protect women in politics, ensure due process in gender-based misconduct cases, and reinforce zero-tolerance policies for harassment in legislative spaces. Failure to conduct a thorough, independent, and transparent investigation into recent allegations of sexual harassment within the National Assembly signals a troubling disregard for justice and accountability. Allowing such allegations to go unaddressed not only undermines the integrity of Nigeria’s legislative institutions but also discourages women from participating in governance.
“Given the World Bank’s warning of worsening poverty by 2027, the government must overhaul its approach with fiscal discipline, eliminate wasteful spending, and ensure oversight of the 2025 budget. Expanding social protection, investing in smallholder farmers, and prioritising education, healthcare, and job creation are now vital. The President must address inflation and the cost-of-living crisis with policies to stabilise food prices, improve local production, and respond to exchange rate depreciation while aligning CPI rebasing with tangible economic relief for Nigerians.
“The Federal Inland Revenue Service (FIRS) and relevant fiscal authorities ensure that tax policies are assessed through a gender-sensitive lens to prevent disproportionate burdens on low-income households, particularly women. The Federal Ministry of Finance, in collaboration with FIRS and the Ministry of Women Affairs, should conduct gender impact assessments to ensure that VAT exemptions cover essential goods and services. Additionally, the federal government must ensure that revenue-sharing formulas equitably distribute resources to prevent widening economic disparities between regions.
“The federal Government of Nigeria must now leverage its BRICS partnership to secure strategic investments that prioritise job creation, infrastructure development, and social welfare. We enjoin policymakers to ensure that economic benefits are equitably distributed and that agreements with BRICS countries align with Nigeria’s national interests, particularly in labour rights, environmental protection, and industrial growth.
“The President, in his capacity as Minister of Petroleum Resources, must ensure that the reinstated naira-for-crude framework is strengthened through the establishment of a sustainable, fair, and transparent system. This should include independent third-party monitoring of crude oil sales and pricing to prevent market manipulation, and the development of a competitive fuel pricing model that prioritises local refining.
“The Federal Government to urgently implement constitutional reforms that establish legal backing for state and community-based policing nationwide. While some states have attempted local security outfits, these efforts are hindered by a lack of constitutional recognition and a unified legal framework. Strong regulations must be put in place to prevent abuse, ensure professional standards, and guarantee civilian oversight so that cases like the one experienced in Edo State will not repeat themselves. State governments are reminded to establish decentralised, well-funded, community-driven policing structures to combat insecurity and prioritise early warning systems, community reconciliation, livelihood support, and peacebuilding which focuses on the disproportionate impact on women and children to address the root causes of violence.
“The Central Bank of Nigeria and relevant regulatory bodies must conduct a public audit of banking sector profits and transaction charges. Amid rising poverty and inflation, record bank profits from fees and forex speculation expose a disconnect between financial policy and social wellbeing. CBN must revise its policies to prevent exploitation, cap transaction fees, and mandate the reinvestment of a portion of profits into financial access initiatives for marginalisedcommunities. In addition, the government should consider imposing a windfall tax on extraordinary bank profits to fund social protection programmes and expand financial inclusion.
“All state governments to immediately implement and prioritise the payment of the minimum wage in their 2025 budgets; ensure prompt and full compliance so as to safeguard the dignity of labour, reduce poverty, and improve economic resilience for millions of Nigerian families.”
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