Tinubu Says World Bank Report Shows Reforms Are Working, Promises Better Living Conditions

President Bola Tinubu has welcomed the World Bank’s latest report on Nigeria’s economy, saying its findings indicate that the Federal Government’s economic reforms are beginning to yield results.

The report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, was released in October 2026 as part of the World Bank’s Nigeria Development Update.

In a statement issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, the President said the report showed that the economy was becoming more stable and better positioned for sustained growth.

Tinubu particularly welcomed the World Bank’s finding that Nigeria’s poverty rate had stabilised for the first time since 2019, adding that poverty was expected to decline gradually as economic growth outpaced population growth.

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 in the corresponding period of 2025, despite the effects of the conflict in the Middle East.

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

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 had 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, with the current account surplus rising to $12 billion, representing 7.0 per cent of gross domestic product, in the first half of 2026.

This compared with $8.6 billion recorded in the corresponding period of the previous year.

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 attributed the improvement in government revenues to economic reforms introduced since 2023, which reportedly increased federation revenues by 69 per cent in real terms between 2023 and 2025.

State governments were identified as the largest beneficiaries of the additional revenue, using the resources to increase capital expenditure by 151 per cent in real terms over the same period.

Much of the additional spending went into roads and other transport infrastructure, agriculture, energy and housing.

The report further indicated that 29 of 33 states redirected their 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, Tinubu said the removal of the petrol subsidy, unification of the foreign exchange market and efforts to strengthen fiscal discipline had helped increase government revenues and create room for investment across the three tiers of government.

“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 acknowledged, however, that more work was needed to ensure that the benefits of the reforms translated into improved living conditions for Nigerians, particularly through lower food prices and the creation of decent jobs for young people.

The President said his administration would sustain the reforms while intensifying efforts to promote inclusive economic growth under the Renewed Hope Agenda.

He added that the government would continue expanding targeted cash transfers, which he said had reached more than 10 million households.

Tinubu also pledged to accelerate the deployment of compressed natural gas (CNG), improve agricultural productivity and expand access to affordable healthcare and quality education.

He urged state governments to manage their increased revenues prudently and prioritise projects capable of improving living standards, particularly in health and education.

The President commended the Economic Management Team, led by the Minister of Finance and Coordinating Minister of the Economy, as well as state governors and other stakeholders, for their cooperation in implementing the reforms.

He expressed confidence that the Renewed Hope Agenda 2.0 would accelerate efforts to deliver shared prosperity to Nigerians.