By Chesa Chesa
President Bola Tinubu has welcomed the World Bank’s October 2026 Nigeria Development Update, saying its findings provide further evidence that his administration’s economic reforms are yielding results and putting the country on a stronger path to sustained growth.
The report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, highlights improvements in economic growth, inflation, external reserves and revenue available to state governments following reforms introduced since 2023.
In a statement issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, the President noted the World Bank’s finding that Nigeria’s poverty rate had stabilised for the first time since 2019.
The bank projected that poverty would gradually decline as economic growth outpaced population growth.
According to the report, the Nigerian economy grew by 4.2 per cent in the first half of 2026, compared with 3.9 per cent in the corresponding period of 2025, despite the impact of the conflict in the Middle East.
The World Bank projected that economic growth would average at least 4.4 per cent between 2026 and 2028.
On inflation, the report showed that the rate declined from 27.6 per cent in January 2025 to 15.2 per cent in December of the same year.
However, higher global fuel prices linked to the Middle East conflict had slowed the pace of disinflation, although the bank expected inflation to ease to about 12 per cent by 2028.
Nigeria’s external position also strengthened, with the current account surplus rising to $12 billion, representing 7.0 per cent of gross domestic product, in the first half of 2026, up from $8.6 billion in the corresponding period of 2025.
Gross external reserves also increased from $45.5 billion at the end of 2025 to $53.8 billion at the end of August 2026.
Tinubu said the report attributed significant improvements in government revenue and spending capacity to the reforms introduced by his administration.
According to the World Bank, federation revenues increased by 69 per cent in real terms between 2023 and 2025, with state governments emerging as the largest beneficiaries.
The additional resources enabled states to increase capital expenditure by 151 per cent in real terms over the period, with most of the spending directed towards roads and other transport infrastructure, agriculture, energy and housing.
The report further indicated that 29 of 33 states shifted their spending towards economic infrastructure, while real social spending per person increased in all but one state.
It also found 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 40.0 per cent of GDP in 2025 to 38.1 per cent in 2026.
Reacting to the findings, Tinubu said the removal of the petrol subsidy, unification of the foreign exchange market and measures to strengthen fiscal discipline had helped increase revenue, stabilise the economy and create room for governments at all levels to invest in development.
“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,” he said.
The President, however, acknowledged that more work was needed to ensure that the benefits of the reforms translated into improved living conditions for Nigerians, particularly through lower food prices and increased employment opportunities for young people.
He reaffirmed his administration’s commitment to inclusive growth under the Renewed Hope Agenda, pledging to expand targeted cash transfers, accelerate the deployment of compressed natural gas (CNG), boost agricultural productivity and improve access to affordable healthcare and quality education.
Tinubu said the cash transfer programme had already reached more than 10 million households.
He also urged state governments to manage their increased revenues prudently and prioritise projects that improve living standards, particularly in the health and education sectors.
The President commended the Economic Management Team, led by the Minister of Finance and Coordinating Minister of the Economy, state governors and other stakeholders for their cooperation in implementing the reforms.
He expressed confidence that the Renewed Hope Agenda 2.0 would accelerate the delivery of shared prosperity to Nigerians.
