President Bola Tinubu has welcomed the World Bank’s latest Nigeria Development Update, describing its findings as evidence that his administration’s economic reforms are beginning to deliver results.
In a statement issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu said the October 2026 report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, showed that the country’s economy was gaining stability despite ongoing global economic challenges.
The report noted that Nigeria’s poverty rate had stabilised for the first time since 2019, while the economy recorded 4.2 per cent growth in the first half of 2026, compared with 3.9 per cent during the corresponding period in 2025.
The World Bank projected that economic growth would average at least 4.4 per cent between 2026 and 2028. It also expressed expectations that poverty would gradually decline as economic growth outpaces population growth.
Inflation and External Reserves Show Mixed Progress
According to the report, inflation declined from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. However, higher global fuel prices associated with the conflict in the Middle East have slowed the pace of the decline.
The bank expects inflation to ease to approximately 12 per cent by 2028.
Nigeria’s external position also improved, with its current account surplus rising to $12bn, representing 7 per cent of gross domestic product, in the first half of 2026, up from $8.6bn a year earlier.
Gross external reserves increased from $45.5bn at the end of 2025 to $53.8bn by the end of August 2026.
States Benefit from Increased Revenue
The World Bank attributed a significant increase in government revenue to reforms introduced since 2023, including the removal of petrol subsidies and changes to the foreign exchange market.
According to the report, federation revenues rose by 69 per cent in real terms between 2023 and 2025, with state governments emerging as the biggest beneficiaries.
States increased capital expenditure by 151 per cent in real terms during the same period, directing much of the additional funding towards roads and other transport infrastructure, agriculture, energy and housing.
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The report also found that 29 of 33 states shifted more spending towards economic infrastructure, while real social spending per person increased in all but one state.
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 also projected to decline from 40 per cent of GDP in 2025 to 38.1 per cent in 2026.
Tinubu Promises More Support for Households
Reacting to the findings, Tinubu said the report demonstrated the impact of difficult economic decisions taken by his administration.
“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,” he said.
The President acknowledged that more work was needed to ensure economic improvements translated into better living conditions, particularly through lower food prices and increased employment opportunities for young Nigerians.
“The dividends of reform are becoming visible,” he said, adding that his administration would maintain its reform programme while strengthening its focus on inclusive growth under the Renewed Hope Agenda.
Tinubu also pledged to expand targeted cash transfers, which he said had reached more than 10 million households. Other priorities include accelerating the rollout of Compressed Natural Gas, improving agricultural productivity and expanding access to affordable healthcare and quality education.
President Calls for Responsible Spending by States
The President urged state governments to manage their increased revenues prudently and prioritise projects that directly improve the living standards, health and education of their residents.
He also 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 expressed confidence in the administration’s economic agenda, saying the next phase would focus on accelerating the delivery of shared prosperity to Nigerians.
While the World Bank’s findings point to improvements in economic growth, government revenues and external reserves, the extent to which these gains will ease the cost of living and reduce poverty remains a key measure of the reforms’ impact on ordinary households.
