President Bola Tinubu has welcomed World Bank October 2026 Nigeria Development Update titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, saying its findings confirm administration economic reforms are delivering results.
In a statement on Sunday by the Special Adviser on Information and Strategy, Bayo Onanuga, President Tinubu said report shows economy on firmer footing for sustained growth.
According to World Bank, poverty rate stabilised for first time since 2019 and is expected to decline gradually as GDP grows faster than population. Economy grew 4.2 per cent in first half of 2026, up from 3.9 per cent in first half of 2025, despite Middle East conflict, with projection to average at least 4.4 per cent between 2026 and 2028.
On prices, inflation fell from 27.6 per cent in January 2025 to 15.2 per cent in December 2025, though higher global fuel prices slowed decline. Bank expects inflation to ease to about 12 per cent by 2028.
External position also strengthened, with current account surplus rising to $12.0 billion or 7.0 per cent of GDP in first half of 2026 from $8.6 billion a year earlier, while gross external reserves increased from $45.5 billion at end of 2025 to $53.8 billion at end of August 2026.
Report credits reforms since 2023 with raising federation revenues by 69 per cent in real terms between 2023 and 2025, with states as largest beneficiaries. States used additional resources to increase capital spending by 151 per cent in real terms, mostly on roads and transport, agriculture, energy and housing. Twenty nine of 33 states shifted spending towards economic infrastructure, while real social spending per person rose in all but one state.
It also found internally generated revenue grew in real terms in 31 of 35 states, 21 states reduced debt to GDP ratio between 2021 and 2025, and overall public debt expected to fall from 40.0 per cent of GDP in 2025 to 38.1 per cent in 2026.
President Tinubu said findings confirm difficult but necessary decisions to remove petrol subsidy, unify foreign exchange market and strengthen fiscal discipline have raised revenues, stabilised economy and created fiscal space for every tier to invest in people.
He said dividends are becoming visible but more work remains to translate into better living standards, starting with lower food prices and jobs for young people, assuring administration will stay course of reform and redouble focus on inclusive growth under Renewed Hope Agenda.
President said government will expand targeted cash transfers which have reached over 10 million households, accelerate deployment of CNG, raise agricultural productivity and improve access to affordable healthcare and quality education.
He urged state governments to use higher revenues prudently and prioritise projects that improve living standards, health and education.
He commended Economic Management Team led by Minister of Finance and Coordinating Minister of the Economy, state governors and stakeholders for cooperation, assuring best is yet to come under Renewed Hope Agenda 2.0 to accelerate shared prosperity.
