RismadarVoice Reporters
October 11, 2026
President Bola Tinubu has welcomed the World Bank’s October 2026 Nigeria Development Update, saying its findings indicate that his administration’s economic reforms are producing measurable improvements in growth, government revenue and fiscal stability.
In a statement issued on Sunday by his spokesperson, Bayo Onanuga, the President said the report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, highlighted progress made since the introduction of major economic policy changes in 2023.
According to figures presented in the report, Nigeria’s economy expanded by 4.2 per cent in the first half of 2026, compared with 3.9 per cent growth recorded in 2025.
The World Bank projected average economic growth of at least 4.4 per cent between 2026 and 2028, despite external pressures associated with the conflict in the Middle East.
The report also indicated that Nigeria’s poverty rate had stabilised for the first time since 2019, with the possibility of a gradual decline if economic growth continues to exceed population growth.
On inflation, the report stated that the rate declined from 27.6 per cent in January 2025 to 15.2 per cent in December of the same year. It projected a further reduction to approximately 12 per cent by 2028, although rising global fuel prices could slow that progress.
Nigeria’s external financial position also improved, with the current account surplus reaching $12 billion in the first half of 2026, compared with $8.6 billion during the corresponding period in 2025.
Gross external reserves reportedly increased from $45.5 billion at the end of 2025 to $53.8 billion by August 2026.
The World Bank attributed part of the improvement in government finances to reforms that increased federation revenues by 69 per cent in real terms between 2023 and 2025.
State governments benefited from the additional resources, with capital expenditure increasing by 151 per cent in real terms over the period.
The report indicated that much of the additional expenditure was directed towards infrastructure, including roads, transportation, agriculture, energy and housing.
It further stated that 29 of the 33 states covered by one assessment increased their emphasis on economic infrastructure, while real social spending per person rose in all but one state.
Internally generated revenue also increased in real terms in 31 of 35 states assessed, while 21 states recorded reductions in their debt-to-GDP ratios between 2021 and 2025.
Nigeria’s public debt was projected to decline from 40 per cent of GDP in 2025 to 38.1 per cent in 2026.
Reacting to the findings, Tinubu attributed the reported improvements to the removal of petrol subsidies, foreign exchange reforms and measures aimed at strengthening fiscal discipline.
He maintained that the policies had increased government revenue, improved economic stability and created additional resources for investment across the three tiers of government.
The President, however, acknowledged that stronger economic indicators must translate into tangible improvements in household welfare, particularly through lower food prices, employment opportunities and access to essential services.
He said his administration would continue expanding targeted cash transfers, which he stated had reached more than 10 million households.
Tinubu also identified compressed natural gas deployment, agricultural productivity, affordable healthcare and education as priorities for improving living standards.
He urged state governments to manage their increased revenues responsibly and direct spending towards projects that deliver measurable benefits to residents.
The President commended the Economic Management Team, state governors and other stakeholders for their contributions to the reform programme.
He reaffirmed his administration’s commitment to pursuing economic growth and improving household welfare under the Renewed Hope Agenda 2.0.
Although the report presented improvements in several economic indicators, the extent to which those gains translate into lower living costs, increased employment and reduced poverty remains an important measure of their impact on Nigerians.
