Tinubu: World Bank Report Shows Reforms Yielding Results

President Bola Tinubu says Nigeria’s improving economic indicators show that his administration’s reforms are beginning to yield results, citing stronger growth, higher government revenue and rising external reserves.

The President stated this in a statement issued by the State House on Sunday in response to the World Bank’s October 2026 Nigeria Development Update.

The report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, examined the impact of increased government revenues on economic performance and spending priorities across states.

According to the report, Nigeria’s economy grew by 4.2 per cent in the first half of 2026, up from 3.9 per cent recorded in the corresponding period of 2025, despite the effects of the Middle East conflict.

It projected average economic growth of at least 4.4 per cent between 2026 and 2028, while noting that the poverty rate had stabilised for the first time since 2019.

The report also showed that inflation declined 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 further disinflation.

The World Bank projected that inflation would ease to about 12 per cent by 2028.

Nigeria’s external position also strengthened, with the current account surplus rising to 12 billion dollars, equivalent to 7.0 per cent of Gross Domestic Product (GDP), in the first half of 2026.

This represented an increase from 8.6 billion dollars recorded in the corresponding period of 2025.

Gross external reserves also rose from 45.5 billion dollars at the end of 2025 to 53.8 billion dollars at the end of August 2026.

The report attributed the growth in government revenue to reforms introduced since 2023, noting that federation revenues increased by 69 per cent in real terms between 2023 and 2025.

State governments emerged as the biggest beneficiaries, with their capital expenditure rising by 151 per cent in real terms over the period.

The increased spending largely supported infrastructure and economic development projects in roads, transportation, agriculture, energy and housing.

According to the report, 29 of 33 states redirected spending towards economic infrastructure, while real social spending per person increased in all but one state.

It added 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.

Reacting to the findings, Tinubu attributed the gains to the removal of the petrol subsidy, unification of the foreign exchange market and improved fiscal discipline.

He said the measures had expanded government revenue and created more resources for investment across the federal, state and local governments.

“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.

Tinubu said his administration would sustain the reforms while expanding targeted cash transfers, accelerating the deployment of compressed natural gas and improving agricultural productivity.

He added that the government would also work to increase access to affordable healthcare and quality education.

The President urged state governments to manage their increased revenues prudently and prioritise projects capable of improving living standards, healthcare delivery and education.

He commended the Economic Management Team, state governors and other stakeholders for their contributions to the reform process.

Tinubu reaffirmed his administration’s commitment to sustaining the reforms and delivering shared prosperity under the Renewed Hope Agenda 2.0.