President Bola Tinubu has defended Nigeria's economic reforms, citing a recent World Bank report that indicates the country's economy is growing steadily. The report, titled "Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities," confirms that the difficult decisions taken since 2023 are beginning to yield results. Tinubu's administration has implemented several reforms, including the removal of the petrol subsidy and unification of the foreign exchange market.
According to the World Bank report, 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. The report also projects that growth will average at least 4.4 per cent between 2026 and 2028. This growth is attributed to the government's efforts to strengthen fiscal discipline and increase revenues. The report also found that federation revenues increased by 69 per cent in real terms between 2023 and 2025.
The federal government has forgone over N3.3 trillion in fuel taxes and duties to cushion the impact of rising petrol prices. This move is part of efforts to reduce the cost of living and ease the burden on Nigerians. The government has also expanded compressed natural gas (CNG) transportation as part of its efforts to reduce the cost of living. This expansion is expected to provide alternative and cheaper transportation options for Nigerians.
The presidency has criticized the fuel production subsidy proposed by former Vice President Atiku Abubakar, describing it as unrealistic. Atiku's plan has been rejected by the presidency, which believes that it is not a viable solution to the country's economic challenges. The presidency has reiterated its commitment to the current economic reforms, which it believes will lead to inclusive growth and better living standards for Nigerians.
The World Bank report also found that state governments have emerged as the largest beneficiaries of the increased federation revenues. The additional resources have enabled states to raise capital expenditure by 151 per cent. This increase in capital expenditure is expected to lead to more development projects and improved infrastructure in the states.
President Tinubu has assured Nigerians that his administration will stay the course of reform and redouble its focus on inclusive growth under the Renewed Hope Agenda. He believes that the dividends of reform are becoming visible, but more work remains to ensure that they fully translate into better living standards for every household. The government is committed to reducing food prices and creating decent jobs for young people.
Nigeria has emerged among the top 10 recipients of the $112 billion private capital mobilized by the World Bank Group in the year ended June 2026. This is a significant achievement for the country, which has been working to attract more private investment. The World Bank's report is a validation of the government's efforts to create a more conducive business environment and implement economic reforms.
Key points
- Nigeria's economy grew by 4.2 per cent in the first half of 2026.
- The federal government forgone over N3.3 trillion in fuel taxes and duties.
- Nigeria is among the top 10 recipients of $112 billion private capital mobilized by the World Bank Group.
