President Bola Tinubu has welcomed the World Bank’s October 2026 Nigeria Development Update, saying the report shows that his administration’s economic reforms are beginning to deliver results.

In a statement issued on Sunday, October 11, and signed by his Special Adviser on Information and Strategy, Bayo Onanuga, the President said the findings confirmed that the government’s policies were putting Nigeria’s economy on a firmer footing for sustained growth.

The report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, examined changes in government revenue, spending priorities and economic performance following reforms introduced since 2023.

According to Tinubu, the World Bank found that Nigeria’s economy grew by 4.2 per cent in the first half of 2026, compared with 3.9 per cent in the corresponding period of 2025, despite the impact of the conflict in the Middle East.

The bank projects that economic growth will average at least 4.4 per cent between 2026 and 2028.

Tinubu Highlights Inflation and Reserve Gains

The President also cited the report’s findings on inflation, external reserves and Nigeria’s current account balance as evidence of improving economic conditions.

According to the statement, inflation declined from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. However, higher global fuel prices linked to the Middle East conflict have slowed the pace of the decline.

The World Bank expects inflation to ease to approximately 12 per cent by 2028.

Nigeria’s current account surplus also increased to $12 billion, representing 7 per cent of gross domestic product, in the first half of 2026, compared with $8.6 billion in the same period a year earlier.

The statement added that gross external reserves rose from $45.5 billion at the end of 2025 to $53.8 billion at the end of August 2026.

Tinubu further noted that the World Bank found that Nigeria’s poverty rate had stabilised for the first time since 2019. The bank expects poverty to decline gradually as economic growth outpaces population growth.

States Benefit From Higher Revenue

Tinubu said the World Bank report attributed a 69 per cent increase in federation revenue, in real terms, between 2023 and 2025 to the economic reforms introduced by his administration.

According to the President, state governments were the largest beneficiaries of the additional revenue and increased capital expenditure by 151 per cent in real terms over the same period.

He said much of the additional spending went towards roads and other transport infrastructure, agriculture, energy and housing.

The report also found that 29 of 33 states shifted more of their spending towards economic infrastructure, while real social spending per person increased in all but one state.

Tinubu added that internally generated revenue grew in real terms in 31 of 35 states, while 21 states reduced their debt-to-GDP ratios between 2021 and 2025.

Nigeria’s overall public debt is also projected to decline from 40 per cent of GDP in 2025 to 38.1 per cent in 2026, according to the figures cited in the statement.

Tinubu Defends Petrol Subsidy Removal

The President said the findings supported the government’s decision to remove the petrol subsidy, unify the foreign exchange market and strengthen fiscal discipline.

According to him, the measures have increased government revenue, helped stabilise the economy and created more room for federal, state and local governments to invest in development.

However, Tinubu acknowledged that more work was needed to ensure the gains translated into better living conditions for Nigerians.

He identified lower food prices and decent employment opportunities for young people as priorities for the administration.

“The dividends of reform are becoming visible,” Tinubu said, adding that the government would maintain its reform agenda while placing greater emphasis on inclusive economic growth.

FG Promises More Support for Households

The President said his administration would expand targeted cash transfers, which he stated had reached more than 10 million households.

Other priorities include accelerating the deployment of compressed natural gas (CNG), improving agricultural productivity and expanding access to affordable healthcare and quality education.

Tinubu also urged state governments to manage their increased revenue prudently and prioritise projects capable of improving living standards, particularly in healthcare and education.

He 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 supporting the reforms.

The President said his administration would continue implementing its Renewed Hope Agenda 2.0, with the stated aim of ensuring that economic growth delivers shared prosperity for Nigerians.