President Bola Tinubu has called on state governors to use increased government revenues more responsibly, urging them to prioritise projects that directly improve Nigerians’ living conditions.
The President also stressed the need for greater investment in healthcare and education, saying the benefits of ongoing economic reforms must translate into tangible improvements for households across the country.
The appeal was contained in a State House statement issued on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, following the release of the World Bank’s October 2026 Nigeria Development Update.
President Points to Economic Reforms as Revenue Gains Continue
Tinubu welcomed findings in the World Bank report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, which examined the effects of increased public revenues on government spending across Nigeria.
According to the President, the report supports his administration’s position that the removal of the petrol subsidy, the unification of the foreign exchange market and stronger fiscal discipline have helped improve government finances and stabilise the economy.
He described the decisions, which he acknowledged were difficult, as necessary steps towards creating more resources for the federal, state and local governments to invest in public services and development.
Tinubu maintained that the gains from the reforms were becoming more visible but said additional efforts were needed to ensure economic improvements reached ordinary Nigerians.
Tinubu Identifies Food Prices and Youth Employment as Priorities
Despite the reported improvement in economic indicators, the President acknowledged that more work remained to be done to improve living standards.
He identified lower food prices and decent employment opportunities for young Nigerians as important areas requiring sustained attention.
Tinubu said his administration would continue implementing its economic reform programme while strengthening its focus on inclusive growth under the Renewed Hope Agenda.
He added that the government intended to broaden access to prosperity through targeted cash transfers, wider deployment of Compressed Natural Gas, increased agricultural productivity and improved access to affordable healthcare and quality education.
The President said these measures were intended to ensure that economic progress benefited Nigerians across different income groups.
World Bank Report Records Growth in Nigeria’s Economy
The Presidency cited figures from the World Bank update showing that Nigeria’s economy expanded by 4.2 per cent in the first half of 2026, compared with 3.9 per cent during the corresponding period in 2025.
The report also projected that economic growth would average at least 4.4 per cent between 2026 and 2028.
These projections come amid uncertainty linked to conflict in the Middle East, which has contributed to higher global fuel prices and complicated efforts to reduce inflation.
According to the figures quoted by the Presidency, inflation declined from 27.6 per cent in January 2025 to 15.2 per cent in December 2025. However, the subsequent rise in global fuel prices slowed the downward trend.
The World Bank reportedly expects inflation to ease to approximately 12 per cent by 2028.
External Reserves and Current Account Position Improve
The report also highlighted changes in Nigeria’s external financial position during the first half of 2026.
The country’s current account surplus increased to $12 billion, equivalent to 7 per cent of gross domestic product, compared with $8.6 billion in the same period a year earlier.
Gross external reserves also rose from $45.5 billion at the end of 2025 to $53.8 billion by the end of August 2026.
The Presidency presented these figures as evidence of improving external balances and greater financial stability following the reforms introduced since 2023.
State Governments Benefit From Higher Federation Revenues
Tinubu said the World Bank attributed a 69 per cent increase in federation revenues in real terms between 2023 and 2025 to the economic reforms implemented during his administration.
States were identified as the largest beneficiaries of the additional revenue.
The report, as cited by the President, also indicated that state governments increased capital expenditure by 151 per cent in real terms over the same period.
Much of the additional spending went towards roads and other transport infrastructure, agriculture, energy and housing.
According to the figures released by the Presidency, 29 of 33 states redirected a greater share of their spending towards economic infrastructure, while real social spending per person increased in all but one state.
The findings suggest that higher allocations have supported increased development spending, although Tinubu’s latest appeal indicates that he wants governors to ensure these investments produce meaningful benefits for residents.
Revenue Collection and Public Debt Indicators Show Changes
The World Bank report also recorded improvements in internally generated revenue across much of the federation.
Real internally generated revenue increased in 31 of 35 states, according to the figures cited by the Presidency.
In addition, 21 states reduced their debt-to-GDP ratios between 2021 and 2025.
Nigeria’s overall public debt is also projected to decline from 40 per cent of GDP in 2025 to 38.1 per cent in 2026.
The reported figures provide further context for the President’s argument that stronger public finances should create greater opportunities for governments to fund development projects and improve essential services.
Tinubu Commends Finance Team and State Governors
The President acknowledged the role of the economic management team, state governors and other stakeholders in implementing the administration’s reforms.
He specifically commended the team led by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, for its contribution to the government’s economic programme.
Tinubu also reaffirmed his commitment to the Renewed Hope Agenda 2.0, expressing confidence that the next phase would accelerate efforts to deliver shared prosperity.
He urged state governments to exercise greater prudence in managing their increased revenues, stressing that public spending should focus on projects that improve living standards, expand access to healthcare and strengthen education.
The President’s message places renewed emphasis on how governments deploy the additional resources available to them, with the stated objective of turning improved fiscal indicators into better outcomes for Nigerians.
