President Bola Tinubu has cited the World Bank’s latest Nigeria Development Update as evidence that his administration’s economic reforms are yielding results, pointing to economic growth, rising government revenues and a stabilisation of the poverty rate.
The President, however, acknowledged that more work was needed to translate the reported economic gains into improved living conditions for Nigerians, particularly through lower food prices and the creation of decent jobs for young people.
In a statement issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, Mr Tinubu welcomed the World Bank’s October 2026 report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities.
The report found that Nigeria’s 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.
Mr Tinubu said the findings showed that the government’s economic policies were placing the country on a firmer footing for sustained growth.
He also highlighted the World Bank’s finding that Nigeria’s poverty rate had stabilised for the first time since 2019, although the report expects poverty to decline gradually as economic growth outpaces population growth.
On inflation, the report stated 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 disinflation, with the World Bank projecting that inflation could ease to about 12 per cent by 2028.
The report also highlighted an improvement in Nigeria’s external position, with the current account surplus rising to $12 billion, representing 7.0 per cent of gross domestic product, in the first half of 2026.
This compares with $8.6 billion recorded in the corresponding period of the previous year.
Nigeria’s gross external reserves also increased from $45.5 billion at the end of 2025 to $53.8 billion at the end of August 2026.
The World Bank attributed the improvements in government revenues to economic reforms introduced since 2023, including the removal of petrol subsidy and the unification of the foreign exchange market.
According to the report, 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 same period.
Most of the increased spending went into roads and other transport infrastructure, agriculture, energy and housing.
The report further found that 29 of 33 states reviewed shifted their spending priorities 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 per cent of GDP in 2025 to 38.1 per cent in 2026.
Reacting to the findings, Mr Tinubu said the decisions taken by his administration had increased government revenues, helped stabilise the economy and created room for federal, state and local governments 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.
He added that the benefits of the reforms were becoming visible but acknowledged that the government needed to do more to ensure that economic improvements translated into better living standards for households.
“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,” the President said.
Mr Tinubu reaffirmed his administration’s commitment to continuing the reforms while placing greater emphasis on inclusive growth under its Renewed Hope Agenda.
He said the government would expand targeted cash transfers, which he stated had already reached more than 10 million households.
The administration would also accelerate the deployment of compressed natural gas, CNG, improve agricultural productivity and expand access to affordable healthcare and quality education.
According to the President, the measures were intended to ensure that the benefits of economic growth were shared more widely among Nigerians.
He also urged state governments to exercise greater prudence in managing their increased revenues and prioritise projects capable of improving living standards.
“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,” he said.
The President commended the Economic Management Team, led by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, as well as state governors and other stakeholders, for their cooperation in implementing the reforms.
He said his administration would sustain the policies under the Renewed Hope Agenda 2.0, which he described as a framework for accelerating shared prosperity across the country.