By George Omagbemi
ABUJA — October 12, 2026. President Bola Ahmed Tinubu has defended his administration’s economic reforms, citing improved economic growth, stronger foreign reserves and increased revenue allocations to states, following fresh assessments by the World Bank.
In a statement issued on Sunday, October 11, Tinubu welcomed the bank’s October 2026 Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, saying its findings showed that the economy was becoming more stable.
The World Bank’s separate October Africa Economic Update raised Nigeria’s projected economic growth rate for 2026 to 4.3 per cent, up from 4.0 per cent in 2025. It also projected annual growth of 4.4 per cent in 2027 and 2028, citing improving macroeconomic stability, stronger investor confidence and a gradual recovery in private investment.
The bank’s Nigeria report said the economy grew by 4.2 per cent in the first half of 2026, compared with 3.9 per cent during the same period in 2025.
It also reported that gross external reserves rose from $45.5 billion at the end of 2025 to $53.8 billion at the end of August 2026. Federation revenues increased by 69 per cent in real terms between 2023 and 2025, providing states with additional resources for infrastructure and other public spending.
Tinubu attributed the gains to reforms including petrol subsidy removal, foreign exchange market unification and tighter fiscal management.
However, the World Bank cautioned that stronger growth has yet to translate sufficiently into job creation and poverty reduction. It also warned that higher fuel prices and rising government spending ahead of the 2027 elections could threaten progress.
The bank said sustained reforms, improved public services and greater private investment would be essential to turning economic gains into better living standards.
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