President Bola Tinubu has called on state governments across the country to manage their increased revenues responsibly and focus on projects that will improve the living conditions of Nigerians.
The President also stressed the need for greater investment in the health and education sectors. He made the appeal in a State House statement released on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga.
The statement followed the release of the World Bank’s October 2026 Nigeria Development Update, titled “Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities.”
According to the Presidency, Tinubu welcomed the findings of the World Bank report, which indicated that his administration’s economic reforms are “delivering results and placing the economy on a firmer footing for sustained growth.”
The President explained that the “difficult but necessary decisions” taken by his administration, including the removal of the petrol subsidy, the unification of the foreign exchange market and the enforcement of fiscal discipline, had increased government revenues and helped stabilise the economy.
“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 said.
Tinubu further assured Nigerians that his administration would work towards ensuring that the benefits of economic growth reach everyone. He listed measures such as expanding targeted cash transfers, accelerating the use of Compressed Natural Gas, boosting agricultural production and improving access to affordable healthcare and quality education.
The President added, “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.”
The Presidency said the World Bank report showed that Nigeria’s economy expanded by 4.2 per cent in the first half of 2026, compared with 3.9 per cent recorded during the corresponding period in 2025, despite the conflict in the Middle East.
“The World Bank projects growth to average at least 4.4 per cent between 2026 and 2028,” it stated.
The report also indicated 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 have since slowed the decline, but the World Bank expects inflation to ease to about 12 per cent by 2028.
“Nigeria’s external position also 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.”
Tinubu said the World Bank report “credits the reforms since 2023 with raising federation revenues by 69 per cent in real terms between 2023 and 2025, with states as the largest beneficiaries.”
He further noted that state governments channelled the additional funds into capital projects, increasing their capital expenditure by 151 per cent in real terms within the same period.
“Most of the increase went to roads and other transport, agriculture, energy and housing. Twenty-nine of 33 states shifted their spending towards economic infrastructure, while real social spending per person rose in all but one state.
“The World Bank further found 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; and 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 President praised the Economic Management Team, led by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, alongside state governors and other stakeholders, for their collaboration in implementing the administration’s economic reforms.
“I assure Nigerians that the best is yet to come under the Renewed Hope Agenda 2.0, which will accelerate the delivery of shared prosperity for all Nigerians,” Tinubu
added.
