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‘Our Reforms Are Working’ — Tinubu Hails World Bank Report as Nigeria’s Economy Grows 4.2%
‘Our Reforms Are Working’ — Tinubu Hails World Bank Report as Nigeria’s Economy Grows 4.2%
Tinubu says latest World Bank assessment validates subsidy removal, foreign exchange reforms and tighter fiscal discipline introduced by his administration.
Nigeria’s economy expanded 4.2% in the first half of 2026 as reserves climbed to $53.8bn and current account surplus reached $12bn.
World Bank says poverty has stabilised for the first time since 2019, but President concedes macroeconomic gains must now deliver lower food prices, jobs and better living standards.
States emerge as major winners from revenue surge, recording a 151% real increase in capital spending as Tinubu demands prudent use of additional funds.
October 12, () – President Bola Tinubu, on Sunday, seized on the latest World Bank assessment of Nigeria’s economy to defend his administration’s economic reforms, saying the report provides evidence that the difficult policies implemented since 2023 are beginning to yield results.
The President welcomed the World Bank’s October 2026 Nigeria Development Update, which reported stronger economic growth, higher government revenues, rising external reserves and improved fiscal positions at federal and state levels.
But amid continuing concerns over the cost of living, Tinubu acknowledged that improving economic numbers alone would not be sufficient, declaring that the next phase of the reforms must translate into lower food prices, decent jobs and improved living standards for Nigerian households.
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Presidential Spokesperson, Bayo Onanuga, in a statement issued on Sunday, said the President welcomed the report, titled, “Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities,” as further indication that the economy was responding to reforms undertaken by the administration.
At the heart of the World Bank assessment is a stronger growth outlook.
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Nigeria’s economy expanded by 4.2 per cent in the first half of 2026, up from the 3.9 per cent growth recorded in 2025, despite disruptions arising from the Middle East conflict.
The Bank projects average economic growth of at least 4.4 per cent between 2026 and 2028.
For Tinubu, another significant finding was the Bank’s assessment that Nigeria’s poverty rate had stabilised for the first time since 2019.
The World Bank expects poverty to begin declining gradually as economic growth increasingly outpaces population growth.
The report also pointed to a moderation in inflation, which declined from 27.6 per cent in January 2025 to 15.2 per cent in December 2025.
The current account surplus rose to $12 billion, equivalent to 7.0 per cent of Gross Domestic Product, GDP, in the first half of 2026, from $8.6 billion in the corresponding period of 2025.
Gross external reserves also increased by $8.3 billion within eight months, rising from $45.5 billion at the end of 2025 to $53.8 billion at the end of August 2026.
States Reap Revenue Windfall
Beyond the headline growth figures, the World Bank report drew attention to a significant shift in Nigeria’s public finances following reforms introduced since 2023.
Federation revenues, according to the Bank, increased by 69 per cent in real terms between 2023 and 2025, substantially expanding the resources available to the three tiers of government.
State governments were among the biggest beneficiaries. Their capital expenditure jumped by 151 per cent in real terms over the period, with much of the additional spending directed towards roads, transportation, agriculture, energy and housing.
The Bank found that 29 of the 33 states covered by the assessment shifted expenditure towards economic infrastructure, while real social spending per capita increased in all but one state.
Internally generated revenue also grew in real terms in 31 of the 35 states assessed, while 21 states reduced their debt-to-GDP ratios between 2021 and 2025.
Nigeria’s overall public debt is similarly projected to decline from 40.0 per cent of GDP in 2025 to 38.1 per cent in 2026.
Tinubu said the numbers strengthened his administration’s argument that the removal of petrol subsidy, changes to the foreign exchange regime and tighter fiscal management, though painful, had begun to repair weaknesses in the economy and restore government revenues.
“The difficult but necessary decisions to remove the petrol subsidy, unify the foreign exchange market and strengthen fiscal discipline have raised revenues.
“The decisions have also stabilised the economy and created fiscal space for every tier of government to invest in its people. The dividends of reform are becoming visible,” he said.
‘More Work Remains’
Tinubu, however, stopped short of declaring the economic battle won.
The President acknowledged the central challenge confronting his administration: converting improving macroeconomic indicators into tangible relief for millions of Nigerians still grappling with the consequences of higher living costs.
“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.
“Our administration will stay the course of reform and redouble its focus on inclusive growth under the Renewed Hope Agenda,” he said.
The President said his administration would expand targeted cash transfers, accelerate the deployment of Compressed Natural Gas, CNG, boost agricultural productivity, and improve access to affordable healthcare and quality education.
“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,” Tinubu said.
Tinubu Puts States on Notice
President Bola Tinubu
With the World Bank report showing that states have received a substantial boost from higher federation revenues, Tinubu also shifted part of the responsibility for translating increased public revenues into better living conditions to governors.
He urged state governments to spend their increased revenues prudently and direct more resources towards programmes with a direct impact on citizens.
“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,” the President said.
Tinubu commended the Economic Management Team, led by the Minister of Finance and Coordinating Minister of the Economy, state governors and other stakeholders for supporting the reform programme.
He maintained that the administration would not retreat from its economic policies, promising instead to accelerate measures aimed at spreading the benefits of the improving macroeconomic environment.
“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,” he said.
Background
Tinubu launched one of Nigeria’s most sweeping economic reform programmes immediately after assuming office in May 2023, beginning with the removal of the petrol subsidy and followed by major changes to the foreign exchange regime.
The administration argued that the policies were necessary to halt the enormous fiscal cost of subsidy payments, address distortions in the foreign exchange market, improve public revenues and put government finances on a more sustainable footing.
The measures, however, came with severe short-term consequences for households. Higher fuel and transportation costs fed into prices of food and other essentials, while currency pressures further eroded purchasing power, making the cost of living one of the defining economic and political challenges confronting the administration.
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