President Bola Tinubu has said the World Bank’s October 2026 Nigeria Development Update shows that his administration’s economic reforms are yielding results, citing improved economic growth, increased government revenue and stronger external reserves.
Tinubu stated this in a statement issued by the State House on Sunday, following the release of the report titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities.
The President said the report showed that Nigeria’s economy grew by 4.2 per cent in the first half of 2026, compared with 3.9 per cent during the corresponding period in 2025, despite the impact of the conflict in the Middle East.
According to the report, economic growth is projected to average at least 4.4 per cent between 2026 and 2028, while the poverty rate has 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, higher global fuel prices linked to the Middle East conflict have slowed further reductions.
The World 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 7.0 per cent of gross domestic product, in the first half of 2026, up from $8.6bn in the corresponding period of 2025.
Gross external reserves also increased from $45.5bn at the end of 2025 to $53.8bn at the end of August 2026.
The report attributed the increase in government revenue to economic reforms introduced since 2023, noting that federation revenues rose by 69 per cent in real terms between 2023 and 2025, with state governments emerging as the largest beneficiaries.
It added that states 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.
According to the report, 29 of 33 states shifted their spending towards economic infrastructure, while real social spending per person increased in all but one state.
It further stated 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 said the removal of the petrol subsidy, unification of the foreign exchange market and improved fiscal discipline had increased government revenue and created more resources for investment across the three tiers of government.
“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 sustain the reforms while expanding targeted cash transfers, accelerating the deployment of compressed natural gas, improving agricultural productivity and increasing access to affordable healthcare and quality education.
He also urged state governments to manage their increased revenues prudently and prioritise projects that would improve living standards, healthcare and education.
Tinubu commended the Economic Management Team, state governors and other stakeholders for their roles in implementing the reforms, adding that the administration would intensify efforts to deliver what it described as shared prosperity under the Renewed Hope Agenda 2.0