Abuja:President Bola Tinubu has announced that the World Bank’s October 2026 Nigeria Development Update confirms the success of his administration’s economic reforms, which are strengthening the economy for sustainable growth.
According to News Agency of Nigeria, Tinubu praised the report, titled ‘Beyond the Federal Purse How Higher Revenues Reshaped State Priorities’, for highlighting improvements in economic growth, revenue generation, and fiscal management. The World Bank noted that Nigeria’s poverty rate has stabilized for the first time since 2019, with projections of a gradual decline as economic growth surpasses population growth.
The World Bank report detailed an economic growth rate of 4.2% in the first half of 2026, compared to 3.9% in 2025, despite challenges such as the Middle East conflict. The report projects an average growth rate of at least 4.4% between 2026 and 2028. Inflation decreased from 27.6% in January 2025 to 15.2% in December 2025, although higher global fuel prices linked to the Middle East conflict slowed this decline. Inflation is expected to ease to approximately 12% by 2028.
Additionally, Nigeria’s external position showed improvement, with a current account surplus reaching $12 billion, or 7.0% of GDP, in the first half of 2026, up from $8.6 billion in the same period of 2025. Gross external reserves increased from $45.5 billion at the end of 2025 to $53.8 billion by August 2026.
The report attributes these gains to reforms introduced since 2023, which increased federation revenues by 69% in real terms between 2023 and 2025. State governments benefited significantly, with capital expenditure rising by 151% in real terms, focusing on infrastructure such as roads, transport, agriculture, energy, and housing. Spending on economic infrastructure increased in 29 of the 33 states, and real social spending per capita rose in all but one state. Furthermore, internally generated revenue grew in real terms in 31 out of 35 states, while 21 states reduced their debt-to-GDP ratios between 2021 and 2025. Nigeria’s overall public debt is projected to decrease from 40.0% of GDP in 2025 to 38.1% in 2026.
Tinubu emphasized the impact of reforms such as removing the petrol subsidy, unifying the foreign exchange market, and enhancing fiscal discipline. He highlighted the administration’s plans to expand targeted cash transfers, accelerate Compressed Natural Gas deployment, raise agricultural productivity, and improve access to affordable healthcare and quality 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 support of the reforms. He assured Nigerians that the Renewed Hope Agenda 2.0 will further accelerate the delivery of shared prosperity.