…challenges governors to justify higher revenues
Amidst sustained criticisms of his economic policies by opposition parties, President Bola Ahmed Tinubu has declared that the World Bank 2026 Report has vindicated his administration.
A statement signed by Bayo Onanuga, Special Adviser to the President on Information & Strategy, disclosed that the global financial institution’s report shows the economy grew 4.2 per cent in the first half of 2026, up from 3.9 per cent in the first half of 2025, despite the impact of the conflict in the Middle East. The World Bank projects growth to average at least 4.4 per cent between 2026 and 2028.”
The Presidency also submitted that “the report notes that inflation fell from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. Higher global fuel prices linked to the Middle East conflict have since slowed the decline, but the World Bank expects inflation to ease to about 12 per cent by 2028.”
According to Onanuga, the World Bank acknowledged the growth in Nigeria’s external reserves.
“The current account surplus rose to US12.0 billion or7.0 percent of GDP, in the first half of 2026, up from US8.6 billion a year earlier. Gross external reserves increased from US45.5 billion at the end of 2025 to US53.8 billion at the end of August 2026.
“The report credits the reforms since 2023 with raising federation revenues by 69 per cent in real terms between 2023 and 2025, with states as the largest beneficiaries. States used the additional resources to increase capital spending by 151 per cent in real terms over the same period. Most of the increase went to roads and other transport, agriculture, energy and housing. Twenty-nine of 33 states shifted their spending towards economic infrastructure, while real social spending per person rose in all but one state.”
The statement further noted that “the World Bank further found that, internally generated revenue grew in real terms in 31 of 35 states;21 states reduced their debt-to-GDP ratio between 2021 and 2025.
“Nigeria’s overall public debt is expected to fall from 40.0 per cent of GDP in 2025 to 38.1 per cent in 2026.”
An elated President Tinubu maintained that the positive profile of the state of the Nigerian economy by the international financial institution was a result of his bold economic decisions, which included the removal of fuel subsidy, unification of the foreign exchange rate and fiscal discipline, which he noted have increased revenue accruing to the central government and the subnationals.
President Tinubu, however, tasked governors to use the higher revenues from the Federation Account prudently while he sustains the course of his reforms.
“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.
“Our administration will stay the course of reform and redouble its focus on inclusive growth under the Renewed Hope Agenda.
“We will continue to expand targeted cash transfers, which have already reached more than 10 million households. We will accelerate the deployment of CNG, raise agricultural productivity, and improve access to affordable healthcare and quality education, so that the prosperity being created is shared by all.
“I urge state governments to use their higher revenues more prudently and prioritise projects that improve the living standards of Nigerians, and the health and education of our people.
“I commend the Economic Management Team led by the Minister of Finance and Coordinating Minister of the Economy, state governors and all stakeholders for their cooperation in implementing these reforms. I assure Nigerians that the best is yet to come under the Renewed Hope Agenda 2.0, which will accelerate the delivery of shared prosperity for all Nigerians.”
