Tinubu Welcomes World Bank Report, Says Reforms Are Strengthening Nigeria’s Economy

By Olushola Akinyele, Presstv News Nigeria

President Bola Ahmed Tinubu has welcomed the World Bank’s October 2026 Nigeria Development Update, describing its findings as evidence that his administration’s economic reforms are strengthening the economy and creating opportunities for sustainable growth.

The report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, examines Nigeria’s economic performance, revenue growth and the impact of increased federal allocations on state government spending.

According to a statement issued by Bayo Onanuga, Special Adviser to the President on Information and Strategy, Tinubu said the report showed that the country’s economic outlook was improving, although more work was needed to translate the gains into better living conditions for Nigerians.

Presstv News Nigeria learnt that the President highlighted the World Bank’s finding that Nigeria’s poverty rate had stabilised for the first time since 2019, with the institution projecting a gradual decline in poverty as economic growth outpaces population growth.

The report also indicated that Nigeria’s economy grew by 4.2 per cent in the first half of 2026, compared with 3.9 per cent recorded during the corresponding period in 2025.

The World Bank projected that economic growth would average at least 4.4 per cent between 2026 and 2028, despite external pressures, including the impact of the conflict in the Middle East.

On inflation, the report stated that the rate declined from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. However, rising global fuel prices associated with the Middle East conflict have slowed the pace of disinflation.

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

Nigeria’s external position also improved during the period under review, with the current account surplus increasing to $12 billion, representing 7.0 per cent of gross domestic product, in the first half of 2026, compared with $8.6 billion in the corresponding period of the previous year.

Gross external reserves also rose from $45.5 billion at the end of 2025 to $53.8 billion by the end of August 2026.

The report attributed the increase in government revenues partly to economic reforms introduced since 2023, stating that federation revenues rose by 69 per cent in real terms between 2023 and 2025, with state governments emerging as the largest beneficiaries.

According to the report, state governments increased capital expenditure by 151 per cent in real terms over the same period, directing much of the additional spending towards roads, transportation, agriculture, energy and housing.

It further indicated that 29 of 33 states shifted their spending priorities towards economic infrastructure, while real social spending per capita 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 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, according to the report.

Reacting to the findings, Tinubu said the removal of the petrol subsidy, unification of the foreign exchange market and measures to strengthen fiscal discipline had helped increase government revenues, stabilise the economy and provide additional resources for investment across the three tiers of government.

He acknowledged, however, that the benefits of the reforms had yet to fully translate into improved living conditions for all Nigerians.

The President identified lower food prices and the creation of decent employment opportunities for young people as key priorities for his administration.

He also reaffirmed his commitment to expanding targeted cash transfers, accelerating the deployment of compressed natural gas (CNG), improving agricultural productivity and increasing access to affordable healthcare and quality education.

Tinubu urged state governments to manage their increased revenues prudently and prioritise projects capable of improving citizens’ welfare, particularly in the areas of healthcare, education and infrastructure.

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 roles in implementing the reforms.

The President reiterated his administration’s commitment to the Renewed Hope Agenda, saying it would intensify efforts to ensure that economic growth translates into broader prosperity for Nigerians.