President Bola Ahmed Tinubu has expressed optimism regarding the World Bank’s October 2026 Nigeria Development Update, noting that the data validates his administration’s economic policies and demonstrates that the country is on a stable financial trajectory.
The update was titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities.
In its reaction, the President noted the World Bank’s finding showed that the poverty rate has stabilised for the first time since 2019, adding that the Bank expects poverty to decline gradually as GDP grows faster than the population.
The President’s reaction signed by Bayo Onanuga, his Special Adviser on Information and Strategy, said the report showed the economy grew 4.2 per cent in the first half of 2026, up from 3.9 per cent in the first half of 2025, despite the impact of the conflict in the Middle East.
He said the World Bank projects growth to average at least 4.4 per cent between 2026 and 2028.
On prices, the report noted that inflation fell from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. Higher global fuel prices linked to the Middle East conflict have since slowed the decline, but the World Bank expects inflation to ease to about 12 per cent by 2028.
The report credited the reforms since 2023 with raising federation revenues by 69 per cent in real terms between 2023 and 2025, with states as the largest beneficiaries.
Onanuga said the World Bank further found that, “internally generated revenue grew in real terms in 31 of 35 states; 21 states reduced their debt-to-GDP ratio between 2021 and 2025 and Nigeria’s overall public debt is expected to fall from 40.0 per cent of GDP in 2025 to 38.1 per cent in 2026.”
According to the Presidency, “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 dividends of reform are becoming visible. But more work remains to ensure they fully translate into better living standards for every household, starting with lower food prices and decent jobs for our young people.”
The President explained that his administration will stay the course of reform and redouble its focus on inclusive growth under the Renewed Hope Agenda.
“We will continue to expand targeted cash transfers, which have already reached more than 10 million households. We will accelerate the deployment of CNG, raise agricultural productivity, and improve access to affordable healthcare and quality education, so that the prosperity being created is shared by all.
“I urge state governments to use their higher revenues more prudently and prioritise projects that improve the living standards of Nigerians, and the health and education of our people.
“I commend the Economic Management Team led by the Minister of Finance and Coordinating Minister of the Economy, state governors and all stakeholders for their cooperation in implementing these reforms. I assure Nigerians that the best is yet to come under the Renewed Hope Agenda 2.0, which will accelerate the delivery of shared prosperity for all Nigerians.”
What You Should Know
The World Bank’s latest report on Nigeria highlights a stabilization in poverty rates and steady growth in gross domestic product, alongside a significant increase in government revenues since 2023. While federal and state governments are seeing increased financial resources, everyday citizens are experiencing mixed economic realities as inflation and living costs remain a key challenge.
- Positive Impact: Increased revenue generation has given state governments more financial room to invest in local infrastructure, while poverty rates have stabilized and inflation is projected to ease down to about 12 percent by 2028.
- Potential Concerns: Despite positive macroeconomic projections, high costs of food and general goods continue to strain everyday households, requiring effective translation of government revenue growth into tangible relief for citizens.
