President Bola Ahmed Tinubu has said Nigeria’s economic reforms are yielding results, citing findings from the World Bank’s October 2026 Nigeria Development Update, which indicate improved economic growth, stabilising poverty levels and increased revenue for state governments.
The report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, examines the impact of the Federal Government’s economic reforms on public revenue, government spending and the wider economy.
In a statement issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu said the findings showed that the reforms were placing Nigeria’s economy on a firmer footing for sustained growth.
According to the statement, President Tinubu welcomed the World Bank’s assessment that Nigeria’s poverty rate had stabilised for the first time since 2019, with the institution projecting a gradual decline as economic growth outpaces 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 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 between 2026 and 2028.
On inflation, the report noted that the rate declined 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 downward trend, although the Bank expects inflation to ease to about 12 per cent by 2028.
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, 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.
The report attributed the improvement in public finances to reforms introduced since 2023, which raised federation revenues by 69 per cent in real terms between 2023 and 2025, with state governments emerging as the biggest beneficiaries.
It said states used the additional resources to increase capital expenditure by 151 per cent in real terms over the same period, with much of the spending directed towards roads and other transport infrastructure, agriculture, energy and housing.
According to the World Bank, 29 of 33 states shifted their spending towards economic infrastructure, while real social spending per person increased in all but one state.
The report further indicated 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 also projected to decline from 40.0 per cent of GDP in 2025 to 38.1 per cent in 2026.
Tinubu said the findings validated the difficult decisions taken by his administration, 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,” he said.
The President, however, acknowledged that more work was needed to ensure the benefits of the reforms translated into improved living standards, particularly through lower food prices and the creation of decent jobs for young Nigerians.
He pledged that his administration would sustain the reform programme while strengthening efforts to promote inclusive growth under the Renewed Hope Agenda.
Tinubu said the government would continue to expand targeted cash transfers, which he said had already reached more than 10 million households.
He also promised to accelerate the deployment of compressed natural gas (CNG), improve agricultural productivity and expand access to affordable healthcare and quality education.
The President urged state governments to manage their increased revenues prudently and prioritise projects capable of improving living standards, healthcare and education.
He 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.
President Tinubu assured Nigerians that his administration would intensify efforts under the Renewed Hope Agenda 2.0 to accelerate the delivery of shared prosperity across the country.
