Economy Grew 4.2% In H1 2026, Reserves Hit $53.8bn — Tinubu Cites World Bank To Celebrate Reforms
President Bola Tinubu has celebrated economic reforms as Nigeria’s economy grew by 4.2 per cent in the first half of 2026 and external reserves hit $53.8 billion, citing the World Bank’s October 2026 Nigeria Development Update.
The President said the growth, up from 3.9 per cent in the first half of 2025, and the rise in reserves from $45.5 billion at the end of 2025 to $53.8 billion at the end of August 2026, show his administration’s reforms are “delivering results and placing the economy on a firmer footing for sustained growth.”
The celebration comes on the heels of the World Bank report titled “Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities.”
Tinubu, in a State House release issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, said the “difficult but necessary decisions” taken on the removal of fuel subsidy, unification of the foreign exchange market and fiscal discipline have raised revenues and stabilised 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 said the World Bank projects growth to average at least 4.4 per cent between 2026 and 2028, while 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.
The report also noted that Nigeria’s external position strengthened, with current account surplus rising to $12.0 billion, or 7.0 per cent of GDP, in the first half of 2026, up from $8.6 billion a year earlier.
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.”
The President noted further that states used the additional resources to boost 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. 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.”
He further stated that his administration will ensure prosperity is shared by all Nigerians by expanding targeted cash transfers, accelerating deployment of Compressed Natural Gas, increasing agricultural productivity, and improving access to affordable healthcare and quality 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,” Tinubu added.
He commended the Economic Management Team led by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, state governors and all stakeholders for their cooperation.
“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.
