Tinubu Says World Bank Report Confirms Nigeria’s Economic Reforms Are Working

By Premium News Naija Correspondent

President Bola Ahmed Tinubu has welcomed the World Bank’s latest assessment of Nigeria’s economy, describing its findings as evidence that his administration’s economic reforms are beginning to deliver results. However, questions remain about whether improving economic indicators will translate into lower living costs, better employment opportunities and improved living standards for Nigerians.

The President’s position follows the release of the World Bank’s October 2026 Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities. The report examined Nigeria’s economic performance, rising government revenues and how state governments have used additional funds to support infrastructure and development.

Tinubu said the findings reinforced his administration’s decision to remove the petrol subsidy, unify the foreign exchange market and strengthen fiscal discipline. According to the President, these measures have increased government revenue, improved economic stability and created more financial capacity for federal and state governments to invest in development.

Nevertheless, the central question remains whether these improvements will produce meaningful relief for households and businesses struggling with high prices and the cost of doing business.

World Bank Reports Stronger Nigerian Economic Growth

One of the major findings highlighted by the Federal Government is Nigeria’s improved economic growth in the first half of 2026.

According to the World Bank, Nigeria’s real gross domestic product (GDP) grew by 4.2 per cent in the first half of 2026, compared with 3.9 per cent during the corresponding period in 2025.

The report attributed much of the improved performance to the services sector, alongside a stronger contribution from agriculture.

The World Bank also projected that Nigeria’s economy could grow by an average of 4.4 per cent between 2026 and 2028, provided the country sustains its reform momentum and creates conditions for continued investment and productivity growth.

For the Tinubu administration, the figures provide support for its argument that the Nigerian economy is gradually adjusting to major policy changes introduced since 2023.

However, economic growth does not automatically mean that every household is better off. The extent to which growth improves employment, income and purchasing power will depend on how widely its benefits are distributed across different sectors and communities.

State Governments Benefit From Higher Revenues

A major focus of the World Bank report is the increase in revenue available to Nigeria’s state governments.

The report found that gross federation revenues increased by 69 per cent in real terms between 2023 and 2025. State governments emerged as the largest beneficiaries of the additional resources.

The increase has given state administrations greater financial capacity to undertake capital projects, improve infrastructure and strengthen public services.

According to the report, state capital expenditure increased by 151 per cent in real terms over the same period.

Much of the additional spending went into roads, transport infrastructure, agriculture, energy and housing. The World Bank also reported that 29 of 33 states examined shifted their spending towards economic infrastructure.

These findings suggest that the increase in government revenue has created opportunities for states to address long-standing development challenges.

Nevertheless, the effectiveness of the additional funding will depend on project selection, procurement standards, financial accountability and the quality of implementation.

For residents, the most important question is whether higher state revenues will result in better roads, improved healthcare, stronger schools, reliable water supply and more employment opportunities.

Tinubu Urges Governors to Spend Prudently

While welcoming the World Bank’s findings, Tinubu called on state governments to manage their increased revenues responsibly and prioritise projects that directly improve the welfare of citizens.

The President emphasised the importance of investing in healthcare, education and other services that contribute to human development.

His appeal comes amid continuing debate about how Nigeria’s governments should balance infrastructure investment with social spending.

Road construction and other economic infrastructure can reduce transport costs, improve market access and support business expansion. However, healthcare, education and social protection are equally important for building a productive workforce and reducing poverty.

The World Bank’s analysis highlighted an opportunity for states to strengthen both economic infrastructure and essential public services.

For many state governments, the challenge will be to avoid treating higher allocations as an opportunity for uncontrolled spending. Instead, the additional resources could be used to develop sustainable revenue systems, improve service delivery and support projects with measurable economic and social benefits.

Inflation and Living Costs Remain Major Concerns

Despite the improved economic indicators, inflation remains a significant concern for Nigerian households.

The World Bank reported that headline inflation declined from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. However, higher global fuel prices associated with the conflict in the Middle East, alongside food-price pressures, slowed further progress in reducing inflation.

The lender expects inflation to ease gradually towards approximately 12 per cent by 2028.

Although declining inflation would represent an improvement, it does not necessarily mean that prices will return to previous levels. It generally means prices are rising more slowly, while the actual cost of food, transport, housing and other necessities may remain high.

This distinction is important for Nigerian workers, traders, transport operators and families whose incomes have struggled to keep pace with living expenses.

The Federal Government has therefore highlighted measures intended to cushion the effects of rising fuel prices. Tinubu said the government had forgone more than ₦3.3 trillion in fuel taxes and duties as part of efforts to reduce pressure on consumers and businesses.

The administration has also promoted compressed natural gas (CNG) transportation as an alternative that could reduce transport costs for participating operators and passengers.

The effectiveness of these interventions will depend on how widely their benefits reach ordinary Nigerians.

Foreign Reserves and External Accounts Improve

The World Bank also reported improvements in Nigeria’s external financial position.

Nigeria’s current account surplus rose to approximately $12 billion in the first half of 2026, compared with $8.6 billion in the corresponding period of 2025.

Gross external reserves increased from $45.5 billion at the end of 2025 to $53.8 billion at the end of August 2026.

These developments indicate stronger external buffers and improved capacity to manage certain international payment pressures.

The Federal Government has linked these improvements to its wider economic reform programme, including changes to the foreign exchange market.

However, stronger reserves alone cannot resolve every economic problem. Exchange-rate stability, affordable imports of essential inputs, access to foreign exchange for productive businesses and stronger domestic production will remain important to the long-term outlook.

Nigeria Among Major Recipients of Mobilised Private Capital

Nigeria has also been identified among the top 10 recipients of private capital mobilised by the World Bank Group in the year ended June 2026.

The World Bank Group reportedly mobilised a record $112 billion in private capital during the period, compared with $69 billion in the preceding year.

Nigeria’s inclusion among the leading recipient countries points to the potential importance of private investment in financing development and expanding productive activity.

Private capital can support infrastructure, energy, manufacturing, agriculture and other sectors that create jobs and increase economic output.

However, attracting investment is only part of the challenge. Investors must also be able to operate in a predictable business environment with reliable infrastructure, clear regulations and reasonable operating costs.

The long-term benefits will depend on whether investments translate into additional production, stronger businesses, technology transfer and sustainable employment.

The Real Test of Tinubu’s Economic Reforms

Tinubu’s response to the World Bank report reinforces the Federal Government’s argument that difficult economic adjustments are beginning to produce measurable results.

The figures on GDP growth, public revenue, state capital spending and foreign reserves provide important indicators for assessing Nigeria’s economic direction.

Yet, the success of the reforms will ultimately be judged by their impact on the daily lives of Nigerians.

Households need more affordable food and transportation. Businesses require reliable electricity, access to finance and predictable policies. Young people need employment opportunities, while state governments must convert higher revenues into services and infrastructure that benefit their residents.

The administration will therefore face continued pressure to demonstrate that improvements in macroeconomic indicators can translate into inclusive growth and better living standards.

Conclusion

President Bola Tinubu’s welcome of the World Bank’s October 2026 report has renewed attention on the economic reforms introduced by his administration.

The report identifies stronger economic growth, increased federation revenues, higher state capital expenditure and an improved external position as important developments in Nigeria’s economy.

At the same time, persistent inflation, household financial pressures and the need for stronger public services show that substantial work remains.

For Nigeria, the next phase must focus on converting increased government revenue and economic growth into productive investment, employment, poverty reduction and improved living conditions.

The World Bank’s findings provide grounds for cautious optimism, but sustained progress will depend on sound fiscal management, effective public spending, private-sector expansion and policies that ensure the benefits of growth reach ordinary Nigerians.

Premium News Naija will continue to monitor Nigeria’s economic reforms, inflation trends, government revenue and the impact of economic policies on households and businesses.

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