TINUBU SAYS WORLD BANK REPORT VALIDATES ECONOMIC REFORMS, PROJECTS 4.4% GROWTH

President Bola Tinubu has said Nigeria’s economic reforms are yielding positive results, citing a World Bank report that projects average economic growth of at least 4.4 per cent between 2026 and 2028.

Tinubu, in a statement issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, welcomed the World Bank’s October 2026 Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities.

The President said the report validated his administration’s economic policies and indicated that the country’s economy was becoming better positioned for sustained growth.

He also highlighted the World Bank’s assessment that Nigeria’s poverty rate had stabilised for the first time since 2019, with the institution projecting a gradual decline as economic growth outpaces population growth.

According to the report, Nigeria’s economy expanded by 4.2 per cent in the first half of 2026, compared with 3.9 per cent recorded during the corresponding period in 2025, despite the economic impact of the conflict in the Middle East.

The World Bank projected that economic growth would average at least 4.4 per cent over the 2026–2028 period.

On inflation, Tinubu said the report showed that the rate declined from 27.6 per cent in January 2025 to 15.2 per cent in December of the same year. However, rising global fuel prices associated with the Middle East conflict had slowed further reductions.

The institution expects inflation to ease to approximately 12 per cent by 2028.

The President also pointed to improvements in Nigeria’s external position, noting that the country’s current account surplus increased to $12 billion, representing 7.0 per cent of gross domestic product, in the first half of 2026, up from $8.6 billion recorded a year earlier.

Similarly, gross external reserves rose from $45.5 billion at the end of 2025 to $53.8 billion by the end of August 2026.

Tinubu attributed the improvements to reforms introduced since 2023, which the World Bank said helped increase federation revenues by 69 per cent in real terms between 2023 and 2025, with state governments emerging as the biggest beneficiaries.

He said the additional revenue enabled states to increase capital expenditure by 151 per cent in real terms over the same period.

According to the President, much of the spending was directed towards roads and other transport infrastructure, agriculture, energy and housing.

He added that 29 of the 33 states assessed redirected more of their expenditure towards economic infrastructure, while real social spending per capita increased in all but one state.

The report also indicated that internally generated revenue rose in real terms in 31 of 35 states, while 21 states reduced their debt-to-GDP ratios between 2021 and 2025.

Nigeria’s overall public debt is also projected to decline from 40 per cent of GDP in 2025 to 38.1 per cent in 2026, according to the statement.

The President said the findings demonstrated that the removal of the petrol subsidy, unification of the foreign exchange market and improved fiscal discipline had strengthened government revenues, supported economic stability and created more resources for investment across the three tiers of government.

He, however, acknowledged that further efforts were required to ensure the gains translated into improved living conditions, particularly through lower food prices and increased employment opportunities for young Nigerians.

“The dividends of reform are becoming visible. But more work remains to ensure they fully translate into better living standards for every household, starting with lower food prices and decent jobs for our young people,” Tinubu said.

He reaffirmed his administration’s commitment to economic reforms and inclusive growth under the Renewed Hope Agenda.

The President also pledged to expand targeted cash transfers, which he said had reached more than 10 million households, while accelerating the adoption of compressed natural gas (CNG), improving agricultural productivity and expanding access to affordable healthcare and quality education.

Tinubu urged state governments to manage their increased revenues responsibly and prioritise projects that would improve the welfare of citizens, particularly in the areas of healthcare, education and infrastructure.

He also commended the Economic Management Team, led by the Minister of Finance and Coordinating Minister of the Economy, alongside state governors and other stakeholders, for their role in implementing the reforms.

The President expressed optimism that the Renewed Hope Agenda 2.0 would accelerate efforts to deliver shared prosperity and improve living standards across the country.