President Bola Tinubu has welcomed a new World Bank report on Nigeria’s economy, saying its findings indicate that his administration’s economic reforms are improving government revenue, strengthening economic stability and creating more resources for development.
The President’s reaction followed the release of the World Bank’s October 2026 Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities.
In a statement issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu said the report supported his government’s position that its economic policies were beginning to produce results despite the difficulties Nigerians had experienced.
The President also highlighted the report’s finding that Nigeria’s poverty rate had stabilised for the first time since 2019, adding that the World Bank expected poverty to decline gradually as economic growth outpaced population growth.
According to the statement, Nigeria’s economy expanded 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 effects of the conflict in the Middle East.
The World Bank projected that the economy would record average growth of at least 4.4 per cent between 2026 and 2028.
On inflation, the report showed that the rate dropped from 27.6 per cent in January 2025 to 15.2 per cent in December of the same year. However, rising global fuel prices associated with the Middle East conflict had slowed further progress in bringing inflation down.
The World Bank expects inflation to ease to approximately 12 per cent by 2028.
Nigeria’s external financial position also improved during the period under review. The country recorded a current account surplus of $12 billion, representing 7 per cent of gross domestic product (GDP), in the first half of 2026, compared with $8.6 billion during the same period a year earlier.
The statement further disclosed that Nigeria’s gross external reserves increased from $45.5 billion at the end of 2025 to $53.8 billion by the end of August 2026.
Tinubu Highlights Increase in Revenue to States
Tinubu said the World Bank report attributed a significant rise in government revenue to the economic reforms introduced since 2023, including the removal of the petrol subsidy and changes to the foreign exchange market.
According to the President, federation revenues increased by 69 per cent in real terms between 2023 and 2025, with state governments emerging as the biggest beneficiaries of the additional funds.
He said the increased revenue had enabled states to raise their capital expenditure by 151 per cent in real terms over the same period.
Much of the additional spending went towards roads and other transportation infrastructure, agriculture, energy and housing, according to the statement.
The report also found that 29 out of 33 states redirected more of their spending towards economic infrastructure, while real social spending per person increased in all but one state.
Tinubu further cited improvements in states’ internally generated revenue, noting that 31 out of 35 states recorded real-term growth in revenue generated internally.
The report also indicated that 21 states reduced their debt-to-GDP ratios between 2021 and 2025.
At the national level, Nigeria’s overall public debt is projected to decline from 40 per cent of GDP in 2025 to 38.1 per cent in 2026, according to the statement.
President Defends Petrol Subsidy Removal, Foreign Exchange Reforms
The President maintained that the figures supported his administration’s decision to remove the petrol subsidy, unify the foreign exchange market and strengthen fiscal discipline.
He argued that although the measures were difficult, they had helped increase public revenue, stabilise the economy and provide federal, state and local governments with greater financial capacity to invest in development.
“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,” Tinubu said.
He added that his administration would continue pursuing economic reforms while placing greater emphasis on ensuring that their benefits reach more Nigerians.
“Our administration will stay the course of reform and redouble its focus on inclusive growth under the Renewed Hope Agenda,” he added.
FG Promises More Cash Transfers, Affordable Healthcare and Education
Tinubu also outlined measures his administration intends to pursue to improve living conditions, including expanding targeted cash transfers, accelerating the deployment of compressed natural gas (CNG), increasing agricultural productivity and improving access to affordable healthcare and quality education.
The statement said the government’s targeted cash transfer programme had already reached more than 10 million households.
According to the President, these initiatives are intended to ensure that the economic gains being recorded translate into tangible benefits for households across the country.
He also urged state governments to manage their increased revenues responsibly, prioritising projects that directly improve living standards and strengthen access to healthcare and education.
Tinubu 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.
Concluding his statement, the President expressed confidence in the direction of his administration’s economic programme.
“I assure Nigerians that the best is yet to come under the Renewed Hope Agenda 2.0, which will accelerate the delivery of shared prosperity for all Nigerians,” he said.
