President Bola Tinubu has described the World Bank’s latest Nigeria Development Update as further evidence that his administration’s economic reforms are yielding results, with improved revenue generation, economic growth and increased investment in infrastructure across the states.
In a statement issued by the State House, President Tinubu welcomed the October 2026 report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, saying the findings indicate that Nigeria’s economy is gaining stability and laying the foundation for sustained growth.
The report shows that the 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, while the World Bank projects average growth of at least 4.4 per cent between 2026 and 2028.
It also indicates that Nigeria’s poverty rate has stabilised for the first time since 2019, with expectations of a gradual decline as economic growth outpaces population growth.
On inflation, the report notes a decline from 27.6 per cent in January 2025 to 15.2 per cent in December 2025, although rising global fuel prices associated with the Middle East conflict have slowed further progress.
The World Bank projects that inflation could ease to about 12 per cent by 2028.
Nigeria’s external position also recorded improvements, with the current account surplus rising to 12 billion dollars in the first half of 2026, representing 7 per cent of GDP, while gross external reserves increased to 53.8 billion dollars at the end of August 2026.
President Tinubu attributed the developments to reforms introduced since 2023, including the removal of petrol subsidies, the unification of the foreign exchange market and measures to strengthen fiscal discipline.
According to the report, federation revenues increased by 69 per cent in real terms between 2023 and 2025, with state governments emerging as the largest beneficiaries.
The additional revenue enabled states to increase capital expenditure by 151 per cent in real terms during the period, with significant investments in roads, transportation, agriculture, energy and housing.
The report further indicates that 29 of 33 states redirected spending towards economic infrastructure, while internally generated revenue grew in real terms in 31 of 35 states.
It also shows that 21 states reduced their debt-to-GDP ratios between 2021 and 2025, while Nigeria’s overall public debt is projected to decline from 40 per cent of GDP in 2025 to 38.1 per cent in 2026.
The President, however, acknowledged that more work was needed to ensure the benefits of economic reforms translate into improved living conditions for Nigerians, particularly through lower food prices and job creation.
He reaffirmed his administration’s commitment to expanding targeted cash transfers, accelerating the adoption of compressed natural gas, improving agricultural productivity and increasing access to affordable healthcare and quality education.
President Tinubu also urged state governments to manage their increased revenues prudently and prioritise projects that directly improve citizens’ living standards, particularly in the areas of healthcare and education.
He commended the Economic Management Team, state governors and other stakeholders for their contributions to the reform process, assuring Nigerians that the Renewed Hope Agenda 2.0 would accelerate efforts towards inclusive growth and shared prosperity.
