Tinubu Says World Bank Report Confirms Nigeria’s Economic Reforms Are Working

President Bola Ahmed Tinubu has said the World Bank’s latest Nigeria Development Update confirms that his administration’s economic reforms are yielding results and putting the country on a path to sustained economic growth.

In a statement issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu welcomed the World Bank’s October 2026 report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities.

The President said the report provides evidence that reforms introduced since 2023, including the removal of petrol subsidy, unification of the foreign exchange market and improved fiscal discipline, have strengthened government revenues and created more resources for investment.

According to the report, 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.

The World Bank projects that economic growth will average at least 4.4 per cent between 2026 and 2028.

The report also indicates that the country’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 report showed that the rate fell from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. However, rising global fuel prices associated with the conflict in the Middle East have slowed further declines.

The World Bank expects inflation to ease to approximately 12 per cent by 2028.

Nigeria’s external position also recorded improvements, with the current account surplus rising to $12 billion, representing 7.0 per cent of gross domestic product, in the first half of 2026, up from $8.6 billion in the corresponding period of the previous year.

The country’s gross external reserves also increased from $45.5 billion at the end of 2025 to $53.8 billion at the end of August 2026.

The report further attributed a 69 per cent increase in federation revenues in real terms between 2023 and 2025 to the reforms introduced by the administration, noting that state governments were the largest beneficiaries.

It said state governments increased capital expenditure by 151 per cent in real terms during the period, with significant investments directed towards roads and 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.

The World Bank 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 difficult decisions taken by his administration had strengthened public finances and created opportunities for governments at all levels to invest in development.

“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.

He, however, acknowledged that more work was required to ensure that the gains from the reforms translated into improved living conditions for Nigerians, particularly through lower food prices and increased employment opportunities for young people.

Tinubu said his administration would sustain the reforms while strengthening efforts to promote inclusive growth under the Renewed Hope Agenda.

He added that the government would expand targeted cash transfers, which he said had reached more than 10 million households, accelerate the deployment of compressed natural gas (CNG), improve agricultural productivity and expand access to affordable healthcare and quality education.

The President also urged state governments to manage their increased revenues prudently and prioritise projects capable of improving living standards and strengthening 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 accelerating economic growth and ensuring that the benefits of ongoing reforms are shared more broadly among Nigerians under the Renewed Hope Agenda 2.0.