Tinubu Welcomes World Bank Report, Says Economic Reforms Are Delivering Results
President Bola Ahmed Tinubu has welcomed the World Bank’s October 2026 Nigeria Development Update, saying its findings show that the Federal Government’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 noting that poverty has stabilised for the first time since 2019.
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. The World Bank projects average economic growth of at least 4.4 per cent between 2026 and 2028.
The report also showed that inflation declined from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. However, higher global fuel prices linked to the Middle East conflict have slowed further reductions. 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 (GDP), in the first half of 2026, compared with $8.6 billion a year earlier.
Gross external reserves increased from $45.5 billion at the end of 2025 to $53.8 billion by the end of August 2026.
The World Bank attributed increased federation revenues to reforms introduced since 2023, reporting a 69 per cent rise in real terms between 2023 and 2025, with state governments emerging as the biggest beneficiaries.
It further noted that states increased capital expenditure by 151 per cent in real terms during the period, directing much of the additional funding towards roads and other transport infrastructure, agriculture, energy and housing.
According to the report, 29 of 33 states shifted spending towards economic infrastructure, while real social spending per person increased in all but one state. Internally generated revenue also 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.
Reacting to the findings, President Tinubu said the report confirmed that the removal of the petrol subsidy, unification of the foreign exchange market and stronger fiscal discipline had increased government revenues, stabilised the economy and created room for investment across all tiers of government.
He acknowledged, however, that more work was needed to ensure the benefits of the reforms translated into improved living standards, particularly through lower food prices and more decent jobs for young Nigerians.
The President reaffirmed his administration’s commitment to inclusive growth under the Renewed Hope Agenda, pledging 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 urged state governments to manage their increased revenues prudently and prioritise projects that improve the welfare of citizens, particularly in health and education.
Tinubu also commended the Economic Management Team, led by the Minister of Finance and Coordinating Minister of the Economy, state governors and other stakeholders for their cooperation in implementing the reforms.
He assured Nigerians that the Renewed Hope Agenda 2.0 would accelerate efforts to deliver shared prosperity across the country.
The statement was issued by Bayo Onanuga, Special Adviser to the President on Information and Strategy.
Tinubu Welcomes World Bank Report, Says Economic Reforms Are Delivering Results