*President Bola Tinubu.
President Bola Ahmed Tinubu has welcomed the World Bank’s October 2026 Nigeria Development Update, saying its findings provide evidence that his administration’s economic reforms are stabilising the economy and creating opportunities for sustained growth.
The report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, highlights improvements in economic growth, inflation, external reserves and revenue generation, while examining how increased federal allocations have enabled state governments to expand infrastructure spending.
In a statement issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu said the report confirmed that the difficult but necessary economic decisions taken since 2023 were beginning to yield results.
The President particularly welcomed the World Bank’s finding that Nigeria’s poverty rate had stabilised for the first time since 2019, expressing optimism that poverty would gradually decline as economic growth outpaced population 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 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.
On inflation, the report showed that the rate declined from 27.6 per cent in January 2025 to 15.2 per cent in December of the same year.
However, the decline has slowed following an increase in global fuel prices associated with the Middle East conflict.
The World Bank nevertheless projected that inflation would ease to approximately 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, in the first half of 2026.
This compared with $8.6 billion recorded during the corresponding period a year earlier.
Similarly, the country’s 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 improvements to his administration’s economic reforms, particularly 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,” the President said.
The report also highlighted the impact of the reforms on revenue distribution and spending priorities across the federation.
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.
The increased revenue enabled states to raise capital expenditure by 151 per cent in real terms over the same period.
Much of the additional spending went into roads and other transportation infrastructure, agriculture, energy and housing.
The report further indicated that 29 of 33 states shifted their spending 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.
Despite the improvements, Tinubu acknowledged that more work was needed to ensure that the benefits of the reforms translated into better living conditions for Nigerians.
“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 reaffirmed his administration’s commitment to sustaining the reforms while placing greater emphasis on inclusive economic growth under the Renewed Hope Agenda.
He said the government would continue to expand targeted cash transfers, which he noted had reached more than 10 million households.
Tinubu also pledged to accelerate the deployment of compressed natural gas (CNG), improve agricultural productivity and expand access to affordable healthcare and quality education.
According to him, the measures are intended to ensure that the benefits of economic growth reach more Nigerians, particularly vulnerable households and young people.
The President also urged state governments to manage their increased revenues prudently and prioritise projects capable of improving the welfare of citizens.
“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.
Tinubu commended the Economic Management Team, led by the Minister of Finance and Coordinating Minister of the Economy, as well as state governors and other stakeholders, for their cooperation in implementing the reforms.
He assured Nigerians that his administration would intensify efforts to deliver its economic promises under the Renewed Hope Agenda 2.0.
“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,” the President added.