By Dennis Okechukwu
President Bola Ahmed Tinubu has described the World Bank’s latest Nigeria Development Update as evidence that his administration’s economic reforms are yielding results, while pledging to intensify efforts to improve the living conditions of Nigerians.
The report, titled *Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities*, highlights improvements in economic growth, inflation, foreign reserves and government revenues following reforms introduced since 2023.
In a statement issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu welcomed the report’s finding that Nigeria’s poverty rate had stabilised for the first time since 2019.
The World Bank projected that poverty would gradually decline as economic growth outpaced population growth.
According to the report, Nigeria’s economy grew by 4.2 per cent in the first half of 2026, compared with 3.9 per cent during the corresponding period in 2025, despite the impact of the conflict in the Middle East.
The bank also projected that economic growth would average at least 4.4 per cent between 2026 and 2028.
On inflation, the report indicated that the rate fell from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. However, higher global fuel prices associated with the Middle East conflict have slowed further declines.
The World Bank expects inflation to ease to approximately 12 per cent by 2028.
Nigeria’s external position also recorded improvements, with the current account surplus rising to $12 billion, representing 7.0 per cent of gross domestic product, in the first half of 2026, from $8.6 billion in the corresponding period of the previous year.
Gross external reserves also increased from $45.5 billion at the end of 2025 to $53.8 billion at the end of August 2026.
The report attributed a significant increase in government revenues to reforms implemented since 2023, including the removal of the petrol subsidy and the unification of the foreign exchange market.
It stated that federation revenues increased by 69 per cent in real terms between 2023 and 2025, with state governments emerging as the biggest beneficiaries.
The additional resources enabled states to increase capital expenditure by 151 per cent in real terms over the same period, with much of the spending directed towards roads and other transport infrastructure, agriculture, energy and housing.
Twenty-nine of 33 states covered by the report shifted their spending towards economic infrastructure, while real social spending per person increased in all but one state.
The World Bank further reported 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.
Reacting to the findings, Tinubu said the report confirmed that the difficult decisions taken by his administration had increased government revenues, stabilised the economy and created room for investments across the three tiers of government.
He, however, acknowledged that more work was needed to ensure that the gains translated into improved living standards, particularly through lower food prices and the creation of decent jobs for young Nigerians.
“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 said.
Tinubu reaffirmed his administration’s commitment to the Renewed Hope Agenda, promising to expand targeted cash transfers, accelerate the deployment of compressed natural gas, improve agricultural productivity and increase access to affordable healthcare and quality education.
He said the government’s cash transfer programme had already reached more than 10 million households.
The President also urged state governments to manage their increased revenues prudently and prioritise projects capable of improving the living standards of Nigerians, 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 their cooperation in implementing the reforms.
Tinubu assured Nigerians that his administration would sustain its economic policies and accelerate efforts to ensure that the benefits of growth were shared more widely under the Renewed Hope Agenda 2.0.