…Poverty Rate Stabilises for First Time Since 2019 as Economy Records 4.2% Growth in First Half of 2026
President Bola Ahmed Tinubu has welcomed the World Bank’s October 2026 Nigeria Development Update, describing its findings as further evidence that his administration’s economic reforms are yielding results and laying the foundation for sustained economic growth.
The report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, highlights improvements in economic growth, inflation, foreign reserves and government revenues following reforms introduced since 2023.
In a statement issued on Sunday, October 11, 2026, by his Special Adviser on Information and Strategy, Bayo Onanuga, the President highlighted the World Bank’s finding that Nigeria’s poverty rate had stabilised for the first time since 2019. The Bank projected that poverty would gradually 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 in the corresponding period of 2025, despite the economic impact of the conflict in the Middle East. The World Bank projects average economic growth of at least 4.4 per cent between 2026 and 2028.
On inflation, the report noted that the rate declined from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. However, higher global fuel prices associated with the Middle East conflict have slowed further reductions. The Bank nevertheless expects inflation to ease to approximately 12 per cent by 2028.
Nigeria’s external position also recorded significant improvements, with the current account surplus rising to $12 billion, representing 7 per cent of gross domestic product, in the first half of 2026, compared with $8.6 billion in the same period of the previous year.
Similarly, the country’s gross external reserves increased from $45.5 billion at the end of 2025 to $53.8 billion by the end of August 2026.
The World Bank attributed the increase in government revenues to the economic reforms implemented since 2023, reporting a 69 per cent rise in federation revenues in real terms between 2023 and 2025, with state governments emerging as the biggest beneficiaries.
The additional resources enabled states to increase capital expenditure by 151 per cent in real terms over the same period, with much of the spending directed towards roads and transportation, agriculture, energy and housing.
The report further revealed that 29 of 33 states redirected more of their spending towards economic infrastructure, while real social spending per person increased in all but one state.
Other findings showed that internally generated revenue grew 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.
Reacting to the findings, Tinubu said the report validated the difficult but necessary decisions taken by his administration, including the removal of petrol subsidies, the unification of the foreign exchange market and measures to strengthen fiscal discipline.
“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 President said.
He acknowledged that more work remained to ensure the benefits of the reforms translated into improved living conditions for Nigerians, particularly through lower food prices and the creation of decent jobs for young people.
Tinubu reaffirmed his administration’s commitment to sustaining the reforms while strengthening inclusive growth under the Renewed Hope Agenda.
He disclosed that the Federal Government would continue expanding targeted cash transfers, which he said had reached more than 10 million households, while accelerating the deployment of compressed natural gas (CNG), improving agricultural productivity and expanding access to affordable healthcare and quality education.
The President also urged state governments to manage their increased revenues prudently and prioritise projects that directly improve the welfare of citizens, particularly in 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 and other stakeholders, for their cooperation in implementing the reforms.
Tinubu assured Nigerians that his administration would intensify efforts to deliver shared prosperity under the Renewed Hope Agenda 2.0.
Courtesy: Lagos Panorama
