President Bola Tinubu has said Nigeria’s poverty rate stabilised for the first time since 2019, citing the World Bank’s October 2026 Nigeria Development Update, which projected a gradual decline in poverty as economic growth outpaces population growth.
However, the President acknowledged that lower food prices and decent jobs were still needed to translate economic gains into better living conditions for Nigerians.
The report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, showed that Nigeria’s economy grew by 4.2 per cent in the first half of 2026, up from 3.9 per cent in the corresponding period of 2025.
The World Bank projected average economic growth of at least 4.4 per cent between 2026 and 2028, despite pressures from the conflict in the Middle East.
Inflation fell from 27.6 per cent in January 2025 to 15.2 per cent in December 2025, although rising global fuel prices linked to the Middle East conflict had slowed the pace of disinflation.
The country’s current account surplus also rose to $12 billion, equivalent to seven per cent of gross domestic product, in the first half of 2026, up from $8.6 billion a year earlier.
Gross external reserves increased from $45.5 billion at the end of 2025 to $53.8 billion at the end of August 2026.
In a statement issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu attributed the economic developments to reforms introduced since 2023, including petrol subsidy removal, foreign exchange market unification and measures to strengthen fiscal discipline.
According to the report, the reforms increased federation revenues by 69 per cent in real terms between 2023 and 2025, with state governments emerging as the biggest beneficiaries.
States increased capital expenditure by 151 per cent in real terms during the period, directing much of the additional spending towards roads and other transport infrastructure, agriculture, energy and housing.
Twenty-nine of the 33 states assessed shifted spending towards economic infrastructure, while real social spending per person increased in all but one state.
Internally generated revenue also grew in real terms in 31 of 35 states, while 21 states reduced their debt-to-GDP ratios between 2021 and 2025.
The World Bank projected that Nigeria’s public debt would decline from 40 per cent of GDP in 2025 to 38.1 per cent in 2026.
Reacting to the findings, Tinubu said, “These findings confirm that the difficult but necessary decisions to remove the petrol subsidy, unify the foreign exchange market and strengthen fiscal discipline have raised revenues, stabilised the economy and created fiscal space for every tier of government to invest in its people.
“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 his administration would sustain the reforms while placing greater emphasis on inclusive growth under the Renewed Hope Agenda.
He said the government would expand targeted cash transfers, which he claimed had reached more than 10 million households, accelerate the deployment of compressed natural gas, improve agricultural productivity and expand access to affordable healthcare and quality education.
The President also urged state governments to manage their increased revenues prudently and prioritise projects that improve living standards and access to healthcare and education.
He commended the Economic Management Team, led by the Minister of Finance and Coordinating Minister of the Economy, as well as state governors, for their role in implementing the reforms.
Tinubu expressed optimism that the Renewed Hope Agenda 2.0 would accelerate the delivery of shared prosperity to Nigerians.
