President Bola Tinubu has described the World Bank’s latest assessment of Nigeria’s economy as evidence that his administration’s economic reforms are yielding results, while acknowledging the need to translate the gains into better living conditions for Nigerians.
In a statement issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu welcomed the World Bank’s October 2026 Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities.
The President said the report showed that the removal of petrol subsidy, unification of the foreign exchange market and efforts to strengthen fiscal discipline had improved government revenues, supported economic stability and created more resources for investment across the three tiers of government.
According to the World Bank, Nigeria’s economy grew by 4.2 per cent in the first half of 2026, compared with 3.9 per cent during the corresponding period of 2025, despite disruptions associated with the conflict in the Middle East.
The Bank projected that economic growth would average at least 4.4 per cent between 2026 and 2028, while inflation could decline to approximately 12 per cent by 2028.
Tinubu also highlighted the report’s finding that Nigeria’s poverty rate had stabilised for the first time since 2019, with the World Bank projecting a gradual decline as economic growth outpaces population growth.
The report showed that inflation fell from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. However, higher global fuel prices linked to the Middle East conflict have slowed the pace of disinflation.
Nigeria’s external position also improved, with the current account surplus rising to $12 billion, representing 7.0 per cent of gross domestic product, in the first half of 2026, compared with $8.6 billion in the corresponding period of 2025.
Gross external reserves increased from $45.5 billion at the end of 2025 to $53.8 billion by the end of August 2026, according to the report.
States record revenue gains
The World Bank report attributed a significant increase in government revenues to the reforms introduced since 2023, stating that federation revenues rose by 69 per cent in real terms between 2023 and 2025, with state governments emerging as the biggest beneficiaries.
It found that state governments increased capital expenditure by 151 per cent in real terms over the period, directing much of the additional spending towards roads and other transport infrastructure, agriculture, energy and housing.
Twenty-nine of the 33 states assessed also shifted their spending priorities towards economic infrastructure, while real social spending per person increased in all but one state.
The report further indicated that internally generated revenue grew in real terms in 31 of 35 states, while 21 states reduced their debt-to-GDP ratios between 2021 and 2025.
Nigeria’s overall public debt is projected to decline from 40 per cent of GDP in 2025 to 38.1 per cent in 2026.
Tinubu said the findings demonstrated that the reforms were creating additional fiscal space for governments to invest in infrastructure and public services.
“These findings confirm that the difficult but necessary decisions to remove the petrol subsidy, unify the foreign exchange market and strengthen fiscal discipline have raised revenues, stabilised the economy and created fiscal space for every tier of government to invest in its people,” the President said.
Tinubu promises more relief for households
Despite the positive economic indicators, the President acknowledged that more work was needed to ensure the benefits of the reforms translated into improved living standards, particularly through lower food prices and increased employment opportunities for young Nigerians.
He pledged to sustain the reform programme while strengthening measures aimed at making economic growth more inclusive.
Tinubu said the Federal Government would continue expanding targeted cash transfers, which he stated had reached more than 10 million households.
He also promised to accelerate the deployment of compressed natural gas (CNG), improve agricultural productivity and expand access to affordable healthcare and quality education.
According to him, these interventions are intended to ensure that the benefits of economic recovery reach households across the country.
The President also urged state governments to manage their increased revenues prudently and prioritise investments that directly improve citizens’ welfare, particularly in healthcare, education and other essential services.
He commended the Economic Management Team, led by the Minister of Finance and Coordinating Minister of the Economy, alongside state governors and other stakeholders, for their cooperation in implementing the reforms.
Tinubu reaffirmed his administration’s commitment to the Renewed Hope Agenda, expressing optimism that its next phase would accelerate the delivery of shared prosperity.
“The dividends of reform are becoming visible. But more work remains to ensure they fully translate into better living standards for every household, starting with lower food prices and decent jobs for our young people,” he said.
The President added that his administration would remain committed to the reform agenda while intensifying efforts to ensure that economic progress delivers tangible benefits to Nigerians.