President Bola Ahmed Tinubu has welcomed the World Bank’s October 2026 Nigeria Development Update, saying its findings provide evidence that the Federal Government’s economic reforms are strengthening the economy and creating opportunities for improved living standards.
The report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, highlights improvements in economic growth, inflation, foreign reserves and revenue generation, while examining how increased government revenues have influenced spending priorities across the states.
According to the World Bank, 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 Bank projects average economic growth of at least 4.4 per cent between 2026 and 2028.
The report also noted that Nigeria’s poverty rate has stabilised for the first time since 2019, with expectations of a gradual decline as economic growth outpaces population growth. On inflation, the Bank reported a reduction from 27.6 per cent in January 2025 to 15.2 per cent in December 2025, although rising global fuel prices associated with the Middle East conflict have slowed further progress.
Nigeria’s external position also recorded improvements, with the current account surplus rising to $12 billion, representing 7 per cent of GDP, in the first half of 2026, up from $8.6 billion a year earlier. Gross external reserves increased from $45.5 billion at the end of 2025 to $53.8 billion at the end of August 2026.
The World Bank attributed the increase in government revenues partly to economic reforms introduced since 2023, including petrol subsidy removal, foreign exchange market unification and stronger fiscal management. According to the report, federation revenues rose by 69 per cent in real terms between 2023 and 2025, with state governments emerging as the largest beneficiaries.
The additional resources enabled state governments to increase capital expenditure by 151 per cent in real terms over the same period, with substantial investments directed towards roads and transportation, agriculture, energy and housing. The report further indicated that 29 of 33 states shifted more 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, President Tinubu said the report validated the direction of the administration’s economic policies, while acknowledging that more work was needed to ensure that economic improvements translated into tangible benefits for ordinary Nigerians.
“These findings confirm that the difficult but necessary decisions to remove the petrol subsidy, unify the foreign exchange market and strengthen fiscal discipline have raised revenues, stabilised the economy and created fiscal space for every tier of government to invest in its people,” the President said.
Tinubu stressed that the administration would intensify efforts to address the cost of living, create employment opportunities and expand access to essential services. He said the government would continue targeted cash transfers, accelerate the deployment of compressed natural gas (CNG), improve agricultural productivity and strengthen access to affordable healthcare and quality education.
The President also urged state governments to manage their increased revenues prudently and prioritise projects that improve living conditions, particularly investments in infrastructure, healthcare and education. He commended the Economic Management Team, led by the Minister of Finance and Coordinating Minister of the Economy, alongside state governors and other stakeholders, for their cooperation in implementing the reforms.
Tinubu reaffirmed his administration’s commitment to inclusive economic growth under the Renewed Hope Agenda, saying the next phase would focus on ensuring that the benefits of economic reforms reach households across the country.
He expressed confidence that Renewed Hope Agenda 2.0 would accelerate efforts towards shared prosperity, with particular attention to reducing food prices, creating decent jobs for young Nigerians and improving the welfare of citizens.
The President’s statement was issued on October 11, 2026, by Bayo Onanuga, Special Adviser to the President on Information and Strategy.