Tinubu hails World Bank's update on Nigeria, vows to expand targeted cash transfers

President Bola Tinubu has applauded the latest World Bank’s Nigeria Development Update, noting that the findings are a testament to the fact that the country’s economic reforms are bearing fruit.

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In a statement by Bayo Onanuga, his special adviser on information and strategy, on Sunday, Mr Tinubu said the update shows his administration’s reforms have put the economy on a sound footing for sustained growth.

Since taking office in 2023, Mr Tinubu has pursued an array of reforms aimed at speeding up economic growth in Africa’s most populous country.

Those reforms include removal of costly fuel subsidies, unification of exchange rates, revamp of the nation’s tax system and recapitalisation of the banking and insurance sectors.

In the report issued last Thursday, the World Bank observed that the economy expanded by 4.2 per cent in the first half of 2026, up from 3.9 per cent in the same period of last year, despite the sweeping impact of the Middle East crisis.

It projected the country’s growth to average at least 4.4 per cent this year through 2028.

The World Bank expects inflation, which fell from 27.6 per cent in January 2025 to 15.2 per cent in December 2025, to ease to about 12 per cent by 2028.

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Nigeria’s current account surplus rose to $12 billion or 7 per cent of GDP in the first half of 2026, up from $8.6 billion a year earlier, while gross external reserves advanced from $45.5 billion at the end of 2025 to $53.8 billion at the end of August 2026.

The report stated that the reforms have helped raise the federation revenue by 69 per cent in real terms between 2023 and 2025, with states as the largest beneficiaries.

It also noted that Nigeria’s internally generated revenue grew in real terms in 31 of 35 states, with 21 states cutting back their debt-to-GDP ratio between 2021 and 2025. It expects Nigeria’s overall public debt to fall from 40 per cent of GDP in 2025 to 38.1 per cent in 2026.

Mr Tinubu said states used the additional resources to increase capital spending by 151 per cent in real terms over the same period, while much of the increase went to roads and other transport, agriculture, energy and housing.

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He added that 29 states shifted their spending towards economic infrastructure, while real social spending per person rose in all but one state.

“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,” Mr Tinubu said.

He vowed that his administration will work more to ensure that the reforms fully translate into better living standards for every Nigerian household, starting with lower food prices and decent jobs for young people.

“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,” he said.

He further urged state governments to deploy their increased revenues more prudently and prioritise projects that improve the health, education and living standards of Nigerians.