From Juliana Taiwo-Obalonye, Abuja
President Bola Tinubu has acknowledged that improvements in Nigeria’s economic indicators have yet to translate into meaningful relief for millions of households grappling with high food prices, unemployment and declining living standards.
Tinubu spoke in response to the World Bank’s October 2026 Nigeria Development Update, which reported gains in economic growth, government revenues, external reserves and capital spending.
He said the reforms were helping to stabilise the economy but stressed that more work was needed to lower food prices, create jobs and improve living standards.
The report, titled “Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities,” highlighted improvements in economic growth, inflation, external reserves and government revenues, as well as increased capital expenditure by state governments.
In a statement issued yesterday by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu said the findings confirmed the impact of the removal of the petrol subsidy, unification of the foreign exchange market and efforts 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,” Tinubu said.
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 in the corresponding period of 2025, despite the impact of the conflict in the Middle East.
The World Bank projects that economic growth will average at least 4.4 per cent annually between 2026 and 2028.
The report also found that Nigeria’s poverty rate had stabilised for the first time since 2019. It projected that poverty would decline gradually 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 linked to the Middle East conflict have slowed the decline.
The World Bank expects inflation to ease to about 12 per cent by 2028.
Tinubu said his administration would sustain the reforms while intensifying efforts to improve living conditions, particularly through lower food prices and increased employment opportunities.
“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.
Nigeria’s external position also improved, with the current account surplus rising to $12 billion, representing 7.0 per cent of Gross Domestic Product, in the first half of 2026, from $8.6 billion in the corresponding period of 2025.
Gross external reserves increased from $45.5 billion at the end of 2025 to $53.8 billion at the end of August 2026.
The report further projected that Nigeria’s public debt would decline from 40.0 per cent of GDP in 2025 to 38.1 per cent in 2026.
On government revenues, the World Bank attributed a 69 per cent increase in federation revenues in real terms between 2023 and 2025 to reforms introduced since 2023. State governments were identified as the largest beneficiaries of the additional revenue.
The report said states increased capital expenditure by 151 per cent in real terms over the same period, with most of the spending directed towards roads and other transport infrastructure, agriculture, energy and housing.
It added that 29 of 33 states shifted spending towards economic infrastructure, while real social spending per person increased in all but one state.
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, according to the report.
Tinubu urged state governments to manage their increased revenues prudently and prioritise projects that improve public welfare.
“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 also announced plans to expand targeted cash transfers, accelerate the deployment of compressed natural gas, increase agricultural productivity and improve access to affordable healthcare and quality education.
He said the cash transfer programme had already reached more than 10 million households.
“Our administration will stay the course of reform and redouble its focus on inclusive growth under the Renewed Hope Agenda.
“We will continue to expand targeted cash transfers, which have already reached more than 10 million households. We will accelerate the deployment of CNG, raise agricultural productivity, and improve access to affordable healthcare and quality education, so that the prosperity being created is shared by all.”
Tinubu commended the Economic Management Team, state governors and other stakeholders for their cooperation in implementing the reforms.
He said the administration would continue its policies under the Renewed Hope Agenda 2.0, with a focus on delivering shared prosperity.
“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.
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