President Bola Ahmed Tinubu has said the World Bank’s October 2026 Nigeria Development Update validates his administration’s economic reforms, citing improved economic growth, rising government revenues and the stabilisation of Nigeria’s poverty rate.
Tinubu, in a statement welcoming the report titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, said the findings showed that the economy was gaining a firmer footing for sustained growth.
According to the report, 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 in 2025, despite the economic effects of the conflict in the Middle East.
The World Bank projects that economic growth will average at least 4.4 per cent between 2026 and 2028.
The President 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.
On inflation, the report showed that the rate fell from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. However, higher global fuel prices associated with the Middle East conflict have slowed the pace of decline.
The World Bank expects inflation to ease to about 12 per cent by 2028.
Nigeria’s external position also recorded improvements, with the current account surplus rising to $12 billion, representing 7.0 per cent of gross domestic product (GDP), in the first half of 2026, compared with $8.6 billion in the corresponding period of the previous year.
Gross external reserves increased from $45.5 billion at the end of 2025 to $53.8 billion at the end of August 2026.
Tinubu attributed the developments to reforms introduced since 2023, including the removal of the petrol subsidy, the unification of the foreign exchange market and measures to strengthen fiscal discipline.
“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.
The report also highlighted the impact of increased federation revenues on state government spending.
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.
States subsequently increased capital expenditure by 151 per cent in real terms over the same period, directing most of the additional spending towards roads and other transport infrastructure, agriculture, energy and housing.
Twenty-nine of the 33 states covered in the report shifted their spending towards economic infrastructure, while real social spending per person increased in all but one state.
The report further 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 also projected to decline from 40 per cent of GDP in 2025 to 38.1 per cent in 2026.
Despite the reported improvements, Tinubu acknowledged that more work was required to ensure that economic gains translated into better living conditions for Nigerians, particularly through lower food prices and increased employment opportunities for young people.
“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 pledged to sustain the reform programme and intensify efforts to promote inclusive growth under the Renewed Hope Agenda.
He said the administration would continue expanding targeted cash transfers, which he stated had reached more than 10 million households, while accelerating the deployment of compressed natural gas (CNG), improving agricultural productivity and expanding access to affordable healthcare and quality education.
Tinubu also urged state governments to manage their increased revenues prudently and prioritise projects capable of improving citizens’ living standards, particularly in healthcare and education.
He 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.
The President expressed optimism that the Renewed Hope Agenda 2.0 would accelerate the delivery of shared prosperity across the country.
