Abuja:President Bola Tinubu has stated that the World Bank’s October 2026 Nigeria Development Update confirms the effectiveness of his administration’s economic reforms, which are now strengthening the economy for sustained growth.
According to News Agency of Nigeria, Tinubu highlighted the report titled ‘Beyond the Federal Purse How Higher Revenues Reshaped State Priorities’, which notes improvements in economic growth, revenue generation, and fiscal management. The report indicates that Nigeria’s poverty rate has stabilized for the first time since 2019, with a gradual decline expected as economic growth surpasses population growth.
Economic growth in Nigeria reached 4.2 percent in the first half of 2026, an increase from 3.9 percent in 2025, despite the challenges posed by the Middle East conflict. The World Bank projects an average growth rate of at least 4.4 percent between 2026 and 2028. Inflation has decreased from 27.6 percent in January 2025 to 15.2 percent by December 2025, although higher global fuel prices have slowed the decline. Inflation is projected to ease to around 12 percent by 2028.
The country’s external position has also improved, with a current account surplus of 12 billion dollars, or 7.0 percent of GDP, in the first half of 2026, compared to 8.6 billion dollars in the same period of 2025. Gross external reserves rose from 45.5 billion dollars at the end of 2025 to 53.8 billion dollars by the end of August 2026.
The report attributes these gains to reforms initiated since 2023, which boosted federation revenues by 69 percent in real terms between 2023 and 2025. State governments have benefitted significantly, with capital expenditure growing by 151 percent in real terms, primarily directed towards infrastructure such as roads, transport, agriculture, energy, and housing. Internally generated revenue also grew in real terms in 31 of 35 states, and 21 states reduced their debt-to-GDP ratios between 2021 and 2025.
Nigeria’s overall public debt is projected to decrease from 40.0 percent of GDP in 2025 to 38.1 percent in 2026. President Tinubu underlined the impact of his administration’s actions, including the removal of the petrol subsidy, unification of the foreign exchange market, and the strengthening of fiscal discipline, as pivotal to raising revenues and stabilizing the economy.
Tinubu emphasized the ongoing commitment to these reforms, focusing on inclusive growth through initiatives such as expanding targeted cash transfers, accelerating Compressed Natural Gas deployment, enhancing agricultural productivity, and improving access to healthcare and education. He urged state governments to utilize their increased revenues prudently and prioritize projects that enhance living standards in Nigeria.
The President commended the Economic Management Team, led by the Minister of Finance, state governors, and other stakeholders for their support in these reforms, assuring Nigerians of continued progress under the Renewed Hope Agenda 2.0 to accelerate shared prosperity.