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President Bola Tinubu has welcomed the World Bank’s October 2026 Nigeria Development Update, saying its findings show that his administration’s economic reforms are beginning to deliver results.
The report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, examined Nigeria’s economic performance and how higher government revenues have influenced state spending.
In a statement on Sunday, signed by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu said the findings “confirm that the administration’s economic reforms are delivering results and placing the economy on a firmer footing for sustained growth”.
The President highlighted the World Bank’s assessment that Nigeria’s poverty rate had stabilised for the first time since 2019. He also noted the institution’s projection that poverty would gradually decline as economic growth outpaced population growth.
“The report shows the economy grew 4.2 per cent in the first half of 2026, up from 3.9 per cent in the first half of 2025, despite the impact of the conflict in the Middle East. The World Bank projects growth to average at least 4.4 per cent between 2026 and 2028,” the statement read.
Inflation and External Reserves
Tinubu also highlighted the report’s findings on inflation, external reserves and Nigeria’s current account balance.
According to the statement, inflation 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 conflict in the Middle East have slowed the decline.
The World Bank expects inflation to ease to about 12 per cent by 2028.
Nigeria’s external position also strengthened during the period under review. The current account surplus rose to $12 billion, representing 7.0 per cent of gross domestic product, in the first half of 2026, compared with $8.6 billion a year earlier.
Gross external reserves also increased from $45.5 billion at the end of 2025 to $53.8 billion at the end of August 2026, according to the statement.
States Record Higher Revenues
The President said the World Bank attributed a 69 per cent increase in federation revenues in real terms between 2023 and 2025 to reforms introduced since 2023, with state governments emerging as the largest beneficiaries.
He added that states used the additional funds to increase capital spending by 151 per cent in real terms over the same period.
According to Tinubu, most of the additional spending went towards roads and other transport infrastructure, agriculture, energy and housing.
He said 29 of 33 states shifted their spending towards economic infrastructure, while real social spending per person increased in all but one state.
The statement also cited the World Bank’s findings 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 40.0 per cent of GDP in 2025 to 38.1 per cent in 2026, the statement added.
Tinubu Defends Economic Reforms
Tinubu said the findings supported his administration’s decisions to remove the petrol subsidy, unify the foreign exchange market and strengthen fiscal discipline.
According to the President, the measures have increased government revenues, helped stabilise the economy and created more room for federal, state and local governments to invest in public services and infrastructure.
“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.
The President also outlined plans to expand targeted cash transfers, accelerate the deployment of compressed natural gas, improve agricultural productivity and widen access to affordable healthcare and quality education.
He said the administration’s cash transfer programme had already reached more than 10 million households.
Tinubu urged state governments to manage their increased revenues prudently and prioritise projects that improve living standards, particularly in health and education.
He also 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 role in implementing the 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,” the statement added.
