Tinubu hails World Bank Report, says reforms ‘re delivering, promises more relief for Nigerians

According to a report by The Nation Nigeria on Sunday, October 11, 2026, President Bola Tinubu has said a new World Bank report provides evidence that his administration’s economic reforms are beginning to produce results, following an improvement in Nigeria’s economic growth and a stabilisation of the poverty rate.

The report, released in October 2026, indicated that Nigeria’s economy grew by 4.2 per cent in the first half of the year, compared with 3.9 per cent in the corresponding period of 2025 and 3.5 per cent in 2024.

According to the World Bank, the improvement in economic performance helped stabilise the poverty rate for the first time since 2019.

The findings offer a measure of support for the Tinubu administration’s economic policies, which include the removal of petrol subsidies, foreign exchange reforms and efforts to improve government revenue.

However, the World Bank stressed that sustaining the gains would require continued reforms, more efficient public spending, improved service delivery and stronger job creation.

In its October 8 Nigeria Development Update, titled “Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities,” the bank said Nigeria had demonstrated economic resilience despite external pressures, including fluctuations in global oil prices.

The report noted that the reforms had significantly increased revenue available to state governments, creating opportunities for greater investment in infrastructure, education, healthcare and other essential public services.

It also emphasised that improved economic indicators alone would not be sufficient to ensure lasting reductions in poverty unless the benefits reached households across the country.

The World Bank estimated that Nigeria’s economy could grow by an average of 4.4 per cent annually between 2026 and 2028, provided the government maintains its reform programme and improves the delivery of public services.

Inflation is also projected to decline gradually to approximately 12 per cent by 2028, while poverty is expected to begin falling over the same period.

The report highlighted the impact of the federal government’s economic policies on revenue distribution, particularly at the state level.

According to the World Bank, gross federation revenues increased by 69 per cent in real terms between 2023 and 2025, largely reflecting foreign exchange reforms, petrol subsidy removal and improved revenue collection.

State governments recorded substantial increases in their available resources, with aggregate state revenues rising by approximately 93 per cent in real terms over the period.

The bank said states had used some of the additional funds to strengthen their finances and expand spending on infrastructure, housing, agriculture and other economic activities.

Capital expenditure also increased, with its share of total state expenditure rising from 46 per cent to 61 per cent.

However, the report identified areas requiring greater attention. Education accounted for 12.1 per cent of state expenditure in 2025, down from 14.9 per cent in 2021, while health spending remained broadly stable at around seven per cent.

The World Bank urged state governments to improve spending efficiency, strengthen accountability and invest more in education, healthcare and social protection to ensure that increased revenues deliver tangible benefits to citizens.

Despite the improvement in economic growth and government revenues, the World Bank acknowledged that inflation and rising living costs continue to affect household purchasing power.

Inflation declined significantly from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. However, the downward trend slowed in 2026 amid higher fuel prices and seasonal food-price pressures.

The development has complicated efforts to translate improved macroeconomic indicators into better living conditions for ordinary Nigerians.

In a separate report published in July 2026, Reuters reported that the Federal Government was planning to introduce a scorecard to monitor poverty, real income growth and inequality as it seeks to demonstrate the impact of its reforms on households.

The initiative reflected continuing concerns that improvements in government finances, foreign exchange conditions and investor confidence had yet to provide sufficient relief for many Nigerians facing high food, transport and other living expenses.

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