President Bola Tinubu has called on state governments in Nigeria to use their higher revenues prudently and focus on projects that improve the living standards of Nigerians, particularly in the health and education sectors. This appeal was made through a State House release issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga. Tinubu's call comes after the World Bank's October 2026 Nigeria Development Update report, which highlights the impact of his administration's economic reforms.
According to the World Bank report, Nigeria's economy grew 4.2 per cent in the first half of 2026, up from 3.9 per cent in the first half of 2025. The report also projects growth to average at least 4.4 per cent between 2026 and 2028. Additionally, inflation fell from 27.6 per cent in January 2025 to 15.2 per cent in December 2025, although higher global fuel prices have slowed the decline. The World Bank expects inflation to ease to about 12 per cent by 2028.
Tinubu attributed the positive economic trends to his administration's reforms, including the removal of the fuel subsidy, unification of the foreign exchange market, and fiscal discipline. These reforms have raised the country's revenues and stabilised the economy. The President confirmed that the difficult but necessary decisions taken have created fiscal space for every tier of government to invest in its people.
The World Bank report credits the reforms since 2023 with raising federation revenues by 69 per cent in real terms between 2023 and 2025, with states being the largest beneficiaries. The states have used the additional resources to boost their capital spending by 151 per cent in real terms over the same period. Most of the increase went to roads and other transport, agriculture, energy, and housing.
Tinubu urged state governments to prioritise projects that improve the living standards of Nigerians, particularly in the health and education sectors. He also assured Nigerians that his administration will stay the course of reform and redouble its focus on inclusive growth under the Renewed Hope Agenda. The President commended the Economic Management Team, state governors, and all stakeholders for their cooperation in implementing his administration's reforms.
The President noted that 29 of 33 states shifted their spending towards economic infrastructure, while real social spending per person rose in all but one state. Internally generated revenue grew in real terms in 31 of 35 states, and 21 states reduced their debt-to-GDP ratio between 2021 and 2025. 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.
Tinubu assured 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 also announced plans to expand targeted cash transfers, accelerate the deployment of Compressed Natural Gas, increase agricultural productivity, and improve access to affordable healthcare and quality education.
Key points
- President Bola Tinubu urges state governments to use their higher revenues prudently and focus on projects that improve the living standards of Nigerians.
