President Bola Tinubu has welcomed the World Bank’s October 2026 Nigeria Development Update.
He said his administration’s economic policies are beginning to yield results through increased government revenue, improved external reserves and moderating inflation.
The report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, also indicated that Nigeria’s poverty rate had stabilised for the first time since 2019.
This was according to a statement issued on Sunday by the President’s Special Adviser on Information and Strategy, Bayo Onanuga.
Tinubu said the World Bank’s findings confirmed that the government’s economic policies were placing the country on a firmer footing for sustained growth.
The report showed that Nigeria’s economy grew by 4.2% in the first half of 2026, compared with 3.9% in the same period of 2025, despite disruptions from the conflict in the Middle East.
It projected average economic growth of at least 4.4% between 2026 and 2028. It also predicted that inflation could decline to about 12% by 2028.
According to the statement, inflation dropped from 27.6% in January 2025 to 15.2% in December 2025. However, rising global fuel prices linked to the Middle East conflict have slowed the pace of disinflation.
Tinubu also highlighted improvements in Nigeria’s external position. The current account surplus rose to $12bn, representing 7.0% of gross domestic product, in the first half of 2026. This was up from $8.6bn a year earlier.
The country’s gross external reserves also increased from $45.5bn at the end of 2025 to $53.8bn at the end of August 2026.
The President said the World Bank attributed a significant increase in government revenue to policies introduced since 2023.
Federation revenues rose by 69% in real terms between 2023 and 2025, with state governments emerging as the biggest beneficiaries.
He added that states increased capital expenditure by 151% in real terms during the period. Much of the additional funding went towards roads, transportation, agriculture, energy and housing.
Tinubu Urges Prudent Spending, More Work Ahead
The report further indicated that 29 of 33 states shifted their spending priorities towards economic infrastructure. Real social spending per person increased in all but one state.
Tinubu also cited findings that internally generated revenue grew in real terms in 31 of 35 states. In addition, 21 states reduced their debt-to-GDP ratios between 2021 and 2025.
Nigeria’s overall public debt is projected to decline from 40% of GDP in 2025 to 38.1% in 2026, according to the statement.
The President maintained that the removal of the petrol subsidy, unification of the foreign exchange market and stronger fiscal discipline had increased government revenues, supported economic stability and created additional resources for investment across the three tiers of government.
He, however, acknowledged that more work was required to ensure that the reported improvements translated into better living conditions for Nigerians, 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,” Tinubu said.
He reaffirmed his administration’s commitment to economic policies and inclusive growth under the Renewed Hope Agenda.
The President also pledged to expand targeted cash transfers, which the statement said had reached more than 10 million households, accelerate the deployment of compressed natural gas, improve agricultural productivity and expand access to affordable healthcare and quality education.
Tinubu asked state governments to manage their increased revenues prudently and prioritise projects that directly improve citizens’ living standards, particularly in healthcare, education and other essential services.
He also commended the Economic Management Team, led by the Minister of Finance and Coordinating Minister of the Economy, alongside state governors and other stakeholders.
