By Ayomide Otitoju
President Bola Tinubu has welcomed the World Bank’s October 2026 Nigeria Development Update, saying its findings indicate that the Federal Government’s economic reforms are yielding results.
The report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, examines the impact of increased government revenues on spending priorities across the states.
In a statement issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu said the report confirmed that the administration’s reforms were strengthening the economy and creating conditions for sustained growth.
The President also highlighted the World Bank’s finding 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.
According to the statement, the report showed 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, despite the impact of the Middle East conflict.
The World Bank projected that economic growth would average at least 4.4 per cent between 2026 and 2028.
On inflation, Tinubu cited the report as showing a decline 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 had slowed the decline, while inflation was projected to ease to about 12 per cent by 2028.
The report also highlighted improvements in Nigeria’s external position, with the current account surplus rising to $12 billion, or 7 per cent of gross domestic product (GDP), in the first half of 2026, from $8.6 billion a year earlier.
Gross external reserves also increased from $45.5 billion at the end of 2025 to $53.8 billion at the end of August 2026, according to the statement.
Tinubu said the World Bank attributed a 69 per cent increase in federation revenues in real terms between 2023 and 2025 to reforms introduced since 2023, with state governments emerging as the largest beneficiaries.
He added that states increased capital expenditure by 151 per cent in real terms over the same period, directing much of the additional funding towards roads and other transport infrastructure, agriculture, energy and housing.
According to the President, 29 of 33 states shifted spending towards economic infrastructure, while real social spending per person increased in all but one state.
The statement further noted that internally generated revenue 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 also projected to decline from 40 per cent of GDP in 2025 to 38.1 per cent in 2026, the statement said.
Tinubu attributed the reported improvements to the removal of the petrol subsidy, the unification of the foreign exchange market and measures to strengthen fiscal discipline.
He said the reforms had increased government revenues, supported economic stability and created additional fiscal space for federal, state and local governments to invest in development.
“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,” the President said.
He pledged that the administration would maintain its reform programme while expanding targeted cash transfers, accelerating the deployment of compressed natural gas (CNG), improving agricultural productivity and increasing access to affordable healthcare and quality education.
Tinubu said targeted cash transfers had reached more than 10 million households, adding that the government would continue pursuing measures aimed at ensuring that economic gains benefited Nigerians across income groups.
The President also urged state governments to manage their increased revenues prudently and prioritise projects that improve living standards, healthcare and education.
He commended the Economic Management Team, led by the Minister of Finance and Coordinating Minister of the Economy, as well as state governors and other stakeholders, for their cooperation in implementing the reforms.
Tinubu expressed confidence that the administration’s Renewed Hope Agenda 2.0 would accelerate efforts to deliver broader economic opportunities and shared prosperity.
