President Bola Tinubu has cited a new World Bank report as evidence that his administration’s economic reforms are yielding results, despite continued pressure on Nigerians’ living standards.
The World Bank’s October 2026 Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, said 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.
The report also indicated that the country’s poverty rate had stabilised for the first time since 2019, with the bank projecting a gradual decline as economic growth outpaces population growth.
In a statement issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu said the findings showed that the removal of petrol subsidy, foreign exchange market reforms and tighter fiscal management had strengthened the economy and increased government revenues.
The World Bank projects Nigeria’s economic growth to average at least 4.4 per cent between 2026 and 2028.
On inflation, the report said the rate fell from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. However, higher global fuel prices linked to the conflict in the Middle East have slowed the decline.
The bank expects inflation to ease to about 12 per cent by 2028.
Nigeria’s external position also improved, with the current account surplus rising to $12bn, representing 7 per cent of gross domestic product, in the first half of 2026, up from $8.6bn a year earlier.
External reserves also increased from $45.5bn at the end of 2025 to $53.8bn by the end of August 2026.
According to the report, reforms introduced since 2023 helped increase federation revenues by 69 per cent in real terms between 2023 and 2025, with state governments emerging as the biggest beneficiaries.
States subsequently increased capital expenditure by 151 per cent in real terms over the same period, with much of the spending directed towards roads, transportation, agriculture, energy and housing.
The report said 29 of 33 states shifted spending towards economic infrastructure, while real social spending per person increased in all but one state.
It also found 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 projected to decline from 40 per cent of GDP in 2025 to 38.1 per cent in 2026.
Reacting to the findings, Tinubu said the reforms had created room for governments at all levels to invest in development, but acknowledged that more work was needed to translate economic gains into improved living conditions.
“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.
The President said his administration would expand targeted cash transfers, which he said had reached more than 10 million households, while accelerating the deployment of compressed natural gas, improving agricultural productivity and expanding access to affordable healthcare and quality education.
He also urged state governments to manage their increased revenues prudently and prioritise projects that directly improve living standards, healthcare and education.
Tinubu reaffirmed his commitment to continuing the reforms under the Renewed Hope Agenda, saying the government would focus on inclusive growth and ensuring that economic gains benefit Nigerians across the country.
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