President Bola Ahmed Tinubu has welcomed the World Bank’s latest report on Nigeria’s reform gains, saying the removal of petrol subsidy, unification of the foreign exchange market and strengthened fiscal discipline have raised revenues, stabilised the economy and created greater fiscal space for all tiers of government to invest in their people.
The President stated this in a statement issued on Sunday by his Spokesperson, Mr Bayo Onanuga, while welcoming the World Bank’s October 2026 Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities.
President Tinubu said the report provides further evidence that the administration’s economic reforms are delivering results and placing the economy on a firmer footing for sustained growth.
The President noted the World Bank’s finding that Nigeria’s poverty rate has stabilised for the first time since 2019, with the Bank expecting poverty to decline gradually as Gross Domestic Product grows faster than the population.
“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,” President Tinubu said
According to the report, the economy grew by 4.2 per cent in the first half of 2026, up from 3.9 per cent in the corresponding period of 2025, despite the impact of the conflict in the Middle East.
The World Bank also projects that Nigeria’s economic growth will average at least 4.4 per cent between 2026 and 2028.
On prices, the report noted that inflation declined from 27.6 per cent in January 2025 to 15.2 per cent in December 2025.
It, however, stated that higher global fuel prices linked to the Middle East conflict had since slowed the pace of decline, while projecting that inflation would ease to about 12 per cent by 2028.
Nigeria’s external position also strengthened, with the current account surplus rising to US$12.0 billion, representing 7.0 per cent of GDP, in the first half of 2026, compared with US$8.6 billion recorded a year earlier.
Gross external reserves also increased from US$45.5 billion at the end of 2025 to US$53.8 billion at the end of August 2026.
The report credited reforms introduced since 2023 with raising federation revenues by 69 per cent in real terms between 2023 and 2025, with states emerging as the largest beneficiaries.
According to the World Bank, states deployed the additional resources to increase capital spending by 151 per cent in real terms over the same period, with most of the increase directed towards roads and other transport infrastructure, agriculture, energy and housing.
It further found that 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 reported that internally generated revenue grew in real terms in 31 of 35 states, while 21 states reduced their debt-to-GDP ratio between 2021 and 2025.
Nigeria’s overall public debt is also expected to decline from 40.0 per cent of GDP in 2025 to 38.1 per cent in 2026.
President Tinubu said the dividends of the reforms were becoming increasingly visible but acknowledged that more work remained to ensure they translated fully into improved living standards for Nigerian households.
“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.
Reaffirming the administration’s commitment to sustaining the reforms, President Tinubu declared, “Our administration will stay the course of reform and redouble its focus on inclusive growth under the Renewed Hope Agenda.”
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The President said the government would continue to expand targeted cash transfers, which have already reached more than 10 million households.
“We will accelerate the deployment of CNG, raise agricultural productivity, and improve access to affordable healthcare and quality education so that the prosperity being created is shared by all,” he said.
President Tinubu also urged state governments to deploy their increased revenues prudently and give priority to projects capable of improving the living standards of Nigerians.
“I urge state governments to use their higher revenues more prudently and prioritise projects that improve the living standards of Nigerians and the health and education of our people,” the President stated.
He commended the Economic Management Team led by the Minister of Finance and Coordinating Minister of the Economy, state governors and other stakeholders for their cooperation in implementing the reforms.
President Tinubu assured Nigerians that the best is yet to come under the Renewed Hope Agenda 2.0, which he said would accelerate the delivery of shared prosperity for all Nigerians.
