WorldStage– President Bola Ahmed Tinubu has welcomed the World Bank’s October 2026 Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, stating that its findings validate his administration’s bold economic reforms.
According to the report, the nation’s economic strategy is yielding tangible results, headlined by a stabilization in the national poverty rate for the first time since 2019. The World Bank projects that poverty will continue to decline gradually as gross domestic product (GDP) outpaces population growth.
Key Economic Highlights
Growth Momentum: Nigeria’s economy expanded by 4.2% in the first half of 2026, improving from 3.9% in the corresponding period of 2025, despite external headwinds from Middle East conflicts. Growth is projected to average at least 4.4% between 2026 and 2028.
External Resilience: The country’s current account surplus climbed to US$12.0 billion (7.0% of GDP) in H1 2026, up from US$8.6 billion a year earlier. Gross external reserves similarly strengthened, rising from US$45.5 billion at year-end 2025 to US$53.8 billion by August 2026.
Fiscal and Debt Outlook: Federation revenues surged by 69% in real terms between 2023 and 2025 due to reforms such as petrol subsidy removal and foreign exchange unification. Meanwhile, Nigeria’s overall public debt-to-GDP ratio is projected to ease from 40.0% in 2025 to 38.1% in 2026.
Impact on State Governments and Infrastructure
The World Bank report highlights that state governments emerged as the largest beneficiaries of the revenue surge, directing additional resources toward physical and social infrastructure:
Capital Expenditure: States ramped up capital spending by 151% in real terms, prioritizing transportation (roads), agriculture, energy, and housing.
Internal Revenue: Internally generated revenue (IGR) experienced real-term growth across 31 of 35 states.
Debt Management: A total of 21 states successfully reduced their debt-to-GDP ratios between 2021 and 2025.
Outlook Under the “Renewed Hope Agenda 2.0”
Acknowledging that challenges remain—particularly regarding food prices and youth employment—President Tinubu reaffirmed his administration’s commitment to staying the course of reform.
He highlighted ongoing measures under the Renewed Hope Agenda 2.0, which include expanding targeted cash transfers (already reaching over 10 million households), accelerating compressed natural gas (CNG) deployment, and boosting agricultural productivity.
The President urged state governors to maintain fiscal prudence, prioritizing high-impact projects that directly improve the healthcare, education, and living standards of citizens.
