By Shakirat Lawal.
President Bola Tinubu has welcomed the World Bank’s October 2026 Nigeria Development Update, saying its findings indicate that the Federal Government’s economic reforms are beginning to deliver results.
In a statement issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu said the report, titled “Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities,” showed that the economy was becoming more stable and better positioned for sustained growth.
According to the President, the World Bank reported 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. The bank also projected average economic growth of at least 4.4 per cent between 2026 and 2028.
Tinubu further highlighted the report’s finding that Nigeria’s poverty rate had stabilised for the first time since 2019. He noted that poverty was expected to decline gradually as economic growth outpaced population growth.
On inflation, the President said the report recorded a decline from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. However, higher global fuel prices associated with the conflict in the Middle East had slowed further progress. The World Bank projected that inflation could ease to about 12 per cent by 2028.
The report also highlighted improvements in Nigeria’s external position. According to the statement, the country’s current account surplus increased to $12 billion, representing 7 per cent of gross domestic product, in the first half of 2026, compared with $8.6 billion a year earlier.
Gross external reserves also rose from $45.5 billion at the end of 2025 to $53.8 billion at the end of August 2026.
Tinubu said the World Bank attributed a 69 per cent real-term increase in federation revenues between 2023 and 2025 to reforms introduced since 2023, with state governments emerging as the biggest beneficiaries.
He added that states increased capital expenditure by 151 per cent in real terms during the period, directing much of the additional spending towards roads and transportation, agriculture, energy and housing.
According to the President, 29 of 33 states shifted more of their spending towards economic infrastructure, while real social spending per person increased in all but one state.
The statement also noted 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 was projected to decline from 40 per cent of GDP in 2025 to 38.1 per cent in 2026.
The President maintained that the removal of the petrol subsidy, the unification of the foreign exchange market and stronger fiscal discipline had helped increase government revenues, stabilise the economy and create room for investment across the different tiers of government.
However, he acknowledged that more work was needed to ensure that the benefits of the reforms translated into improved living standards, particularly through lower food prices and more employment opportunities for young Nigerians.
Tinubu said his administration would continue to expand targeted cash transfers, accelerate the deployment of compressed natural gas (CNG), improve agricultural productivity and widen access to affordable healthcare and quality education.
He also urged state governments to manage their increased revenues prudently and prioritise projects that would improve the welfare of Nigerians, particularly in the areas of health, education and infrastructure.
The President 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 cooperation in implementing the reforms.
He reaffirmed his administration’s commitment to sustaining the reform agenda under the Renewed Hope Agenda 2.0, with a focus on inclusive growth and shared prosperity.
