The October 2026 report by the World Bank on Nigeria”s economy contains a lot positive things about Nigeria”s ostensibly due to President Bola Tinubu’s economic reforms.
The findings confirm that the reforms are delivering results and placing the nation’s economy on a firmer footing for sustained growth.
The World Bank’s report said the poverty rate has stabilised for the first time since 2019 and it expects poverty to decline gradually as the Gross Domestic Product(GDP ) grows faster than the population.
The 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.
On the Consumer Price Index( CPI) , the World Bank’s 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 however slowed the decline, but the bank expects inflation to ease to about 12 per cent by 2028.
The report shows that
Nigeria’s external position has strengthened. The current account surplus rose to US$12.0 billion, or 7.0 per cent of GDP, in the first half of 2026, up from US$8.6 billion a year earlier. Gross external reserves increased from US$45.5 billion at the end of 2025 to US$53.8 billion at the end of August 2026.
The report credits the reforms since 2023 with raising Nigeria’s revenues by 69 per cent in real terms between 2023 and 2025, with states as the largest beneficiaries. The 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. 29 states of the 36 states shifted their spending towards economic infrastructure, while real social spending per person rose in all but one state.
The World Bank’s report further notes 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.
The World Bank’s report confirms what unbiased and reasonable Nigerians already know that the difficult but necessary decisions by President Bola Tinubu 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 the people.
“The dividends of the reform are becoming visible. However , what remains now is for the government to translate the macro economic gains to the micro economic level to ensure better living standards for every household
The Renewed Hope Agenda of Mr President should
stay the course of the reforms and redouble its focus on inclusive growth.
The state governments should use their higher revenues more prudently and prioritise projects that have a positive impact on the living standards of Nigerians, and the health and education of the populace.
If anything, the positive World Bank’s report underscores the need for the initiator of the bold reforms to be given another term in office to consolidate and translate them into better living standards of Nigerians..
ABOUT THE AUTHOR:
Osikhekha is a public affairs analyst based in Lagos
