Tinubu Says World Bank Report Shows His Economic Reforms Are Delivering Results

President Bola Tinubu has described the World Bank’s October 2026 Nigeria Development Update as evidence that his administration’s economic reforms are beginning to produce positive results, with improvements recorded in economic growth, inflation, foreign reserves and revenue allocation to states.

The report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, examines the effects of economic policy changes introduced since 2023, particularly their impact on government revenue, public spending and development priorities across the country.

In a statement issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu welcomed the report’s findings, especially its assessment that Nigeria’s poverty rate had stabilised for the first time since 2019.

The World Bank projected that poverty could gradually decline if economic growth continues to outpace population growth.

According to the report, Nigeria’s economy expanded by 4.2 per cent in the first half of 2026, compared with 3.9 per cent during the corresponding period of 2025, despite disruptions associated with the conflict in the Middle East.

The bank also forecast average economic growth of at least 4.4 per cent between 2026 and 2028.

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 linked to the Middle East conflict had slowed the pace of further reductions.

Despite these pressures, the World Bank expected inflation to moderate to approximately 12 per cent by 2028.

Nigeria’s external position also recorded improvements. The country’s current account surplus rose to $12 billion, equivalent to 7.0 per cent of gross domestic product, in the first half of 2026, compared with $8.6 billion during the same period in 2025.

External reserves increased from $45.5 billion at the end of 2025 to $53.8 billion by the end of August 2026.

Tinubu said the report linked these developments, alongside stronger public finances, to reforms aimed at improving revenue generation and strengthening fiscal management.

The World Bank reported that federation revenue increased by 69 per cent in real terms between 2023 and 2025, with state governments receiving the largest share of the gains.

The increased allocations provided states with greater capacity to fund development projects. Capital expenditure by state governments rose by 151 per cent in real terms over the period, with significant investments directed towards roads, transportation, agriculture, energy and housing.

The report also found that 29 of 33 states redirected more of their spending towards economic infrastructure, while real social expenditure per person increased in all but one state.

Internally generated revenue grew in real terms in 31 of 35 states, while 21 states recorded reductions in their debt-to-GDP ratios between 2021 and 2025.

At the national level, Nigeria’s public debt is projected to decline from 40.0 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 efforts to improve fiscal discipline had helped expand government revenue, stabilise the economy and create more resources for public investment.

“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.

However, Tinubu acknowledged that further efforts were required to ensure that the gains from the reforms translated into tangible improvements in Nigerians’ daily lives.

He identified lower food prices and more employment opportunities for young people as important priorities for his administration.

The President reaffirmed his commitment to inclusive economic growth under the Renewed Hope Agenda, outlining plans to expand targeted cash transfers, accelerate the adoption of compressed natural gas (CNG), improve agricultural productivity and widen access to affordable healthcare and quality education.

He disclosed that the government’s cash transfer programme had reached more than 10 million households.

Tinubu also called on state governments to manage their increased revenues responsibly and channel more resources into projects that directly improve living standards, particularly in 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 role in implementing the reforms.

The President expressed optimism that the Renewed Hope Agenda 2.0 would build on the reported economic gains and accelerate efforts to deliver shared prosperity across the country.