President Bola Tinubu yesterday 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.
What the World Bank Report Says
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.
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.
The report further indicated that poverty had stabilised for the first time since 2019, with the World Bank expecting a gradual decline as economic growth outpaces population growth.
Tinubu Elated, Welcomes Findings
While welcoming the report, Tinubu said his administration would expand targeted cash transfers, which he said had reached more than 10 million households, while accelerating CNG deployment and improving agricultural productivity, healthcare and education.
“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.
“I commend the Economic Management Team led by the Minister of Finance and Coordinating Minister of the Economy, state governors and all stakeholders for their cooperation in implementing these 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,” he stated.
Beyond the development update, the president used his message on X yesterday to highlight what he described as the benefits of government-backed CNG transportation, citing commuters and commercial drivers who said the alternative fuel had reduced their travel costs.
Tinubu expressing his view on a documentary on the progress of the CNG initiative in Nigeria, recounted the experience of some citizens, including Blessing, whose journey from Masaka to Berger in the Federal Capital Territory, he said now costs N500, compared with N1,500 previously, representing a saving of N1,000 per trip.
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He also cited Ada and Abigail, who reportedly pay N1,600 to travel from Enugu to Nsukka instead of N4,000, saving N2,400 per journey. A taxi driver in the video, Kabir, told the president that N10,000 worth of CNG enabled him to make three additional return trips compared with colleagues using petrol. Tinubu also said he had received reports from Borno of commuters paying as little as N50 per trip on CNG and electric vehicles.
“Your various experiences show what our investment in CNG transportation is intended to achieve. Lower operating costs for drivers should translate into more affordable fares for passengers, leaving families with more money for their everyday needs.
“When we removed the petrol subsidy, I knew the decision would bring difficulties for many households. With that decision came a responsibility to provide practical alternatives that would ease transportation costs. Your stories show this is already happening, and I want more Nigerians to experience these benefits,” he added.
The president said the federal government was working with state governments, through the Nigeria Governors’ Forum (NGF), and private investors to expand services under the National Affordable CNG Transportation Programme.
He disclosed that Ekiti had received 15 buses in recent weeks, Lagos 20, while Akwa Ibom had 50 buses ready for service. Katsina had introduced 30 CNG hybrid buses and 200 electric tricycles, while Kano had received 30 CNG buses and five electric buses, with another rollout scheduled for Edo
