President Bola Ahmed Tinubu has welcomed the World Bank’s latest Nigeria Development Update, describing its findings as further evidence that his administration’s economic reforms are producing positive results.
The report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, highlighted improvements across several economic indicators, including growth, inflation, public finances and state-level development spending.
According to the World Bank, Nigeria’s economy expanded by 4.2 percent in the first half of 2026, compared to 3.9 percent during the corresponding period in 2025. The institution also projects average economic growth of at least 4.4 percent between 2026 and 2028.
The report noted that poverty levels have stabilized for the first time since 2019 and are expected to gradually decline as economic growth outpaces population growth.
It further indicated that inflation fell from 27.6 percent in January 2025 to 15.2 percent by December 2025, although geopolitical tensions in the Middle East slowed recent progress.
Nigeria’s external reserves also strengthened, rising from $45.5 billion at the end of 2025 to $53.8 billion by August 2026, while the country’s current account surplus increased to $12 billion in the first half of the year.
The World Bank credited reforms introduced since 2023 with boosting federation revenues by 69 percent in real terms between 2023 and 2025, enabling states to significantly increase capital expenditure on infrastructure, agriculture, energy and housing projects.
Reacting to the report, President Tinubu said the removal of fuel subsidies, foreign exchange reforms and fiscal discipline measures had expanded government revenues and stabilized the economy.
“The dividends of reform are becoming visible,” the President stated, while acknowledging that more work is needed to improve living standards, reduce food prices and create employment opportunities.
Tinubu reaffirmed his administration’s commitment to the Renewed Hope Agenda, promising expanded cash transfer programmes, increased agricultural productivity, wider deployment of Compressed Natural Gas (CNG) and improved access to healthcare and education.
He also urged state governments to utilize increased revenues responsibly and prioritize projects that directly improve the welfare of citizens.
