President Bola Tinubu has urged state governments in the Federation to judiciously utilise their revenues and ensure their administrations prioritise projects that improve the standard of living of the populace.
Tinubu, who also called for better investments in the health and education sectors, stated this in a State House release issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga.
The call comes on the heels of the World Bank’s October 2026 Nigeria Development Update, titled “Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities.”
According to the statement, Tinubu confirmed the World Bank’s report, indicating that his administration’s economic reforms are “delivering results and placing the economy on a firmer footing for sustained growth.”
Tinubu said that the “difficult but necessary decisions” taken on the removal of the fuel subsidy, unification of the foreign exchange market and the fiscal discipline implemented by his administration have raised the country’s revenues and stabilised the economy.
“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 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.
“Our administration will stay the course of reform and redouble its focus on inclusive growth under the Renewed Hope Agenda,” he said.
He further stated that his administration will ensure that prosperity is shared by all Nigerians by expanding targeted cash transfers, accelerating the deployment of Compressed Natural Gas, increasing agricultural productivity, and improving access to affordable healthcare and quality education.
Tinubu added, “I urge state governments to use their higher revenues more prudently and prioritise projects that improve the living standards of Nigerians, and the health and education of our people.”
The report, according to the Presidency, showed that despite the conflict in the Middle East, Nigeria’s economy grew 4.2 per cent in the first half of 2026, up from 3.9 per cent in the first half of 2025.
“The World Bank projects growth to average at least 4.4 per cent between 2026 and 2028,” it stated.
The report, as quoted by the Presidency, noted that “inflation fell from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. Higher global fuel prices linked to the Middle East conflict have since slowed the decline, but the World Bank expects inflation to ease to about 12 per cent by 2028.
“Nigeria’s external position also strengthened. The current account surplus rose to US$12.0 billion, or 7.0 per cent of GDP, in the first half of 2026, up from US$8.6 billion a year earlier. Gross external reserves increased from US$45.5 billion at the end of 2025 to US$53.8 billion at the end of August 2026.”
Tinubu said the World Bank report “credits the reforms since 2023 with raising federation revenues by 69 per cent in real terms between 2023 and 2025, with states as the largest beneficiaries.”
The President noted further that the states used the additional resources to boost their capital spending by 151 per cent in real terms over the same period.
“Most of the increase went to roads and other transport, agriculture, energy and housing. Twenty-nine of 33 states shifted their spending towards economic infrastructure, while real social spending per person rose in all but one state.
“The World Bank further found that internally generated revenue grew in real terms in 31 of 35 states; 21 states reduced their debt-to-GDP ratio between 2021 and 2025; and Nigeria’s overall public debt is expected to fall from 40.0 per cent of GDP in 2025 to 38.1 per cent in 2026.”
Tinubu commended the Economic Management Team led by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele; state governors and all stakeholders for their cooperation in implementing his administration’s reforms.
“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,” Tinubu added.