President Bola Tinubu has stated that his administration's economic reforms are starting to show positive results, according to the World Bank's October 2026 Nigeria Development Update report. The report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, indicates that Nigeria's economy grew by 4.2 per cent in the first half of 2026, compared to 3.9 per cent during the same period in 2025. Tinubu made the remarks through his Special Adviser on Information and Strategy, Bayo Onanuga.
The World Bank report confirmed that Tinubu's administration's policies are stabilising the economy and creating opportunities for sustained growth. The report also noted a stabilisation in Nigeria's poverty rate for the first time since 2019 and projected that poverty would gradually decline as economic growth outpaces population growth. Additionally, the bank projected average economic growth of at least 4.4 per cent between 2026 and 2028.
The report also highlighted improvements in Nigeria's external position, with the current account surplus rising to $12 billion, representing 7 per cent of gross domestic product (GDP), in the first half of 2026, compared to $8.6 billion a year earlier. Nigeria's gross external reserves increased from $45.5 billion at the end of 2025 to $53.8 billion at the end of August 2026. Furthermore, the report attributed a 69 per cent increase in real federation revenue between 2023 and 2025 to the reforms introduced since 2023.
State governments have emerged as the largest beneficiaries of the increased revenue, with 29 of 33 states shifting their spending towards economic infrastructure. Real social spending per person increased in all but one state, and internally generated revenue grew in real terms in 31 of 35 states. The report also found that 21 states reduced their debt-to-GDP ratios between 2021 and 2025.
Tinubu attributed the positive results to the removal of the petrol subsidy, unification of the foreign exchange market, and stronger fiscal discipline. He acknowledged that more work is needed to ensure that the gains translate into improved living conditions for Nigerians, particularly through lower food prices and increased employment opportunities for young people.
To achieve this, Tinubu's administration plans to expand targeted cash transfers, which have reached over 10 million households, and accelerate the deployment of compressed natural gas (CNG) and improve agricultural productivity. The president also pledged to improve access to affordable healthcare and quality education under the Renewed Hope Agenda.
Tinubu charged state governments to manage their increased revenues prudently and prioritise projects that would improve living standards, healthcare, and education. He commended the economic management team, state governors, and other stakeholders for their roles in implementing the reforms and assured Nigerians that the best is yet to come under the Renewed Hope Agenda 2.0.
Key points
- President Bola Tinubu says his administration's economic reforms are yielding results.
- Nigeria's economy grew by 4.2 per cent in the first half of 2026.
- The World Bank projects average economic growth of at least 4.4 per cent between 2026 and 2028.
