Tinubu Hails World Bank Report, Urges States To Spend Higher Revenues Prudently

President Bola Tinubu has welcomed the World Bank’s latest Nigeria Development Update and urged state governments to spend their higher revenues more prudently, prioritising projects that improve living standards, health and education.

The President said the report’s findings confirm that his administration’s economic reforms are delivering results according to a statement issued on Sunday by his special adviser on Information and Strategy, Bayo Onanuga.

The October 2026 update, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, found that reforms since 2023 raised federation revenues by 69 per cent in real terms between 2023 and 2025, with states the largest beneficiaries.

States used the additional resources to increase capital spending by 151 per cent in real terms over the period, mostly on roads and other transport, agriculture, energy and housing. Twenty-nine of 33 states shifted spending towards economic infrastructure, while real social spending per person rose in all but one state.

Tinubu said the gains must translate into better living standards for every household, starting with lower food prices and decent jobs for young people.

“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,” he said.

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

The World Bank also found that internally generated revenue grew in real terms in 31 of 35 states, and that 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.

The report said Nigeria’s poverty rate has stabilised for the first time since 2019, and the Bank expects it to decline gradually as GDP grows faster than the population.

The economy grew 4.2 per cent in the first half of 2026, up from 3.9 per cent in the same period of 2025, despite the impact of the conflict in the Middle East. The Bank projects growth to average at least 4.4 per cent between 2026 and 2028.

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 Bank expects inflation to ease to about 12 per cent by 2028.

The current account surplus rose to $12.0 billion, or 7.0 per cent of GDP, in the first half of 2026, 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.

The President said the removal of the petrol subsidy, unification of the foreign exchange market and stronger fiscal discipline had raised revenues, stabilised the economy and created fiscal space for every tier of government.

He promised to continue expanding targeted cash transfers, which he said have reached more than 10 million households, and to accelerate the deployment of compressed natural gas (CNG), raise agricultural productivity, and improve access to affordable healthcare and quality education.

“I assure Nigerians that the best is yet to come under the Renewed Hope Agenda 2.0,” he said.