President Bola Ahmed Tinubu says Nigeria’s economic reforms are beginning to yield measurable results, with federation revenues rising, inflation easing and poverty stabilising, according to the World Bank’s latest assessment of the country’s economy.
The President stated this in a statement issued on Sunday by his spokesperson, Mr Bayo Onanuga, while reacting to the World Bank’s October 2026 Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities.
Tinubu said the report highlighted the effects of the removal of petrol subsidy, unification of the foreign exchange market and improved fiscal discipline, which he said had strengthened public revenues and created more resources for governments at all levels to invest in development.
He added that the findings showed that the administration’s economic policies were helping to stabilise the economy and establish a foundation for sustained growth.
The President noted the World Bank’s assessment that Nigeria’s poverty rate had stabilised for the first time since 2019, with the institution projecting a gradual decline as economic growth outpaces population growth.
“These findings confirm that the difficult but necessary decisions to remove the petrol subsidy, unify the foreign exchange market and strengthen fiscal discipline have raised revenues, stabilised the economy and created fiscal space for every tier of government to invest in its people,” Tinubu said.
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, despite the effects of the conflict in the Middle East.
The World Bank projected that economic growth would average at least 4.4 per cent between 2026 and 2028.
The report also showed that inflation fell from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. However, rising global fuel prices associated with the Middle East conflict had slowed the pace of disinflation, although inflation was projected to ease to about 12 per cent by 2028.
Nigeria’s external position also improved, with the current account surplus increasing to 12.0 billion dollars, equivalent to 7.0 per cent of gross domestic product (GDP), in the first half of 2026, from 8.6 billion dollars a year earlier.
Gross external reserves rose from 45.5 billion dollars at the end of 2025 to 53.8 billion dollars at the end of August 2026.
The World Bank attributed the gains in public revenue to reforms introduced since 2023, which increased federation revenues by 69 per cent in real terms between 2023 and 2025, with state governments emerging as the largest beneficiaries.
The report found that states used the additional funds to raise capital expenditure by 151 per cent in real terms during the period, with much of the spending channelled into roads and other transport infrastructure, agriculture, energy and housing.
It further stated that 29 of 33 states redirected more spending towards economic infrastructure, while real social spending per capita 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.
The World Bank projected that Nigeria’s overall public debt would decline from 40.0 per cent of GDP in 2025 to 38.1 per cent in 2026.
Tinubu acknowledged that, despite the reported progress, more work was required to ensure the benefits of the reforms translated into better living conditions for households, particularly through lower food prices and increased employment opportunities for young people.
“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,” he said.
Reaffirming his administration’s commitment to the reform programme, the President said the government would sustain its policies and intensify efforts to promote inclusive growth under the Renewed Hope Agenda.
He said the government would also expand targeted cash transfers, which had reached more than 10 million households.
“We will accelerate the deployment of CNG, raise agricultural productivity, and improve access to affordable healthcare and quality education, so that the prosperity being created is shared by all,” Tinubu said.
The President urged state governments to manage their increased revenues prudently and prioritise projects that would improve living standards, particularly in healthcare and education.
He 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.
Tinubu expressed confidence that the Renewed Hope Agenda 2.0 would accelerate efforts to broaden access to economic opportunities and ensure that the benefits of growth reached Nigerians across the country.
