President Bola Tinubu on Sunday defended his administration’s economic reforms, citing stronger economic growth, rising foreign reserves and increased revenues to states, and welcomed last week’s World Bank report indicating Nigeria’s steady economic growth.
The president also disclosed that the federal government had forgone more than N3.3 trillion in fuel taxes and duties to cushion the impact of rising petrol prices, while highlighting the expansion of compressed natural gas (CNG) transportation as part of efforts to reduce the cost of living.
The president’s comments on the reforms came as the country emerged among the top 10 recipients of the $112 billion private capital mobilised by the World Bank Group in the year ended June 2026, according to information from the global lender.
Besides, the presidency has again knocked the fuel production subsidy being proposed by former Vice President and candidate of the African Democratic Congress (ADC) in the January 2027 presidential poll, Atiku Abubakar, describing it as ‘unrealistic’.
However, in a statement issued by his Adviser on Information and Strategy, Bayo Onanuga, Tinubu said the World Bank’s October 2026 Nigeria Development Update, titled: “Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities,” confirmed that the difficult decisions taken since 2023 were beginning to yield results.
Tinubu said the removal of the petrol subsidy, unification of the foreign exchange market and efforts to strengthen fiscal discipline had increased government revenues, stabilised the economy and created room for federal and state governments to invest in development.
“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,” he assured.
According to the report, Nigeria’s economy grew 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 effects of the conflict in the Middle East. The World Bank also projected that growth would average at least 4.4 per cent between 2026 and 2028.
Besides, the World Bank report found that federation revenues increased by 69 per cent in real terms between 2023 and 2025, with state governments emerging as the largest beneficiaries. The additional resources enabled states to raise capital expenditure by 151 per cent in real terms over the same period.
Most of the increase in state spending, it said, went into roads and other transport infrastructure, agriculture, energy and housing. According to the report, 29 of 33 states shifted their spending towards economic infrastructure, while real social spending per person increased in all but one state.
The report also found that Internally Generated Revenue (IGR) 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 projected to decline from 40 per cent of gross domestic product in 2025 to 38.1 per cent in 2026.
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On inflation, the report noted that the rate fell from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. However, higher global fuel prices linked to the Middle East conflict have slowed the pace of disinflation, even as the World Bank said it expects inflation to ease to about 12 per cent by 2028.
Nigeria’s external position also improved, with the current account surplus rising to $12 billion, equivalent to 7 per cent of GDP, in the first half of 2026, from $8.6 billion in the corresponding period of 2025. Gross external reserves increased from $45.5 billion at the end of 2025 to $53.8 billion at the end of August 2026.
