President Bola Tinubu has welcomed the October 2026 Nigeria Development Update by the World Bank, titled ‘Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities’, stating that the report confirms his administration’s economic policy shifts are producing results and building a stable foundation for long-term growth.
In a statement issued on Sunday through his Special Adviser on Information and Strategy, Bayo Onanuga, the President highlighted key findings from the report, including the stabilization of the country’s poverty rate for the first time since 2019. The report projects a gradual drop in poverty as GDP expansion outpaces population growth.
According to the statement, Nigeria’s economy expanded by 4.2 per cent in the first half of 2026, compared to 3.9 per cent during the same period in 2025, notwithstanding global disruptions from the conflict in the Middle East. The World Bank forecasts growth to average at least 4.4 per cent annually between 2026 and 2028.
On the price stability front, inflation decreased from 27.6 per cent in January 2025 to 15.2 per cent by December 2025. Although higher global fuel prices linked to Middle Eastern tensions have tempered the pace of decline, the World Bank anticipates inflation will moderate to around 12 per cent by 2028.
The report also pointed to significant improvements in Nigeria’s external balance. The current account surplus widened to US12.0 billion (7.0 per cent of GDP) in the first half of 2026, up from US8.6 billion a year earlier. Gross foreign reserves expanded from US45.5 billion at the end of 2025 to US53.8 billion by late August 2026.
President Tinubu stressed that reforms initiated since 2023 increased real federation revenues by 69 per cent between 2023 and 2025, with state governments deriving the largest benefits. States utilized these increased funds to boost capital expenditure by 151 per cent in real terms over the period.
The bulk of state capital spending went into critical economic infrastructure including roads, transport, agriculture, energy, and housing, with 29 out of 33 states shifting allocations toward economic projects and real per capita social spending rising in all but one state.
Furthermore, internally generated revenue expanded in real terms across 31 of 35 states, while 21 states successfully reduced their debt-to-GDP ratios between 2021 and 2025. Overall national public debt is projected to fall from 40.0 per cent of GDP in 2025 to 38.1 per cent in 2026.
The President noted that these outcomes validate the difficult decisions to end the petrol subsidy, unify foreign exchange rates, and tighten fiscal management, which together raised revenue and created investment capacity for all levels of government.
“The dividends of reform are becoming visible. But more work remains to ensure they fully translate into better living standards for every household, starting with lower food prices and decent jobs for our young people.
“Our administration will stay the course of reform and redouble its focus on inclusive growth under the Renewed Hope Agenda,” the statement added.
To ensure broad-based benefit, President Tinubu pledged that his administration will continue expanding direct targeted cash transfers—which have covered over 10 million households—while speeding up compressed natural gas (CNG) adoption, increasing agricultural yield, and broadening access to healthcare and quality education.
He encouraged state governors to maintain prudent fiscal management by allocating resources toward projects that directly improve public health, education, and standard of living.
“I commend the Economic Management Team led by the Minister of Finance and Coordinating Minister of the Economy, state governors and all stakeholders for their cooperation in implementing these reforms,” the statement read. “I assure Nigerians that the best is yet to come under the Renewed Hope Agenda 2.0, which will accelerate the delivery of shared prosperity for all Nigerians.”
