‎World Bank Reports Positive Economic Reforms In Nigeria Under President Tinubu, But Cautions Against Stagnant Living Conditions For Citizens

The World Bank has revealed that Nigeria’s ongoing economic reforms spearheaded by President Bola Tinubu’s administration are beginning to yield encouraging macroeconomic outcomes, though challenges remain in translating these gains into improved living standards for the majority of the population.

‎This assessment was detailed in the latest Nigeria Development Update (NDU) report, titled “From Policy to People: Bringing the Reform Gains Home,” released on Wednesday in Abuja. The report evaluates the nation’s economic performance and outlines crucial policy priorities to facilitate inclusive and sustainable growth stemming from these reforms.

‎According to the report, Nigeria’s economy saw a year-on-year growth of 3.9 percent in the first half of 2025, an increase from 3.5 percent during the same period in 2024. This growth was attributed to a robust performance in service and non-oil sectors, coupled with enhancements in oil production and agricultural output.

‎The report also highlighted improvements in Nigeria’s external position, with foreign reserves surpassing $42 billion and the current account surplus climbing to 6.1 percent of Gross Domestic Product (GDP). Moreover, fiscal indicators showed a stabilization of the federal deficit, remaining steady at 2.6 percent of GDP despite declining oil prices, while public debt is projected to decrease from 42.9 percent to 39.8 percent of GDP—the first such decline in over a decade.

‎However, the World Bank cautioned that these macroeconomic advancements have not yet led to noticeable relief for households. High levels of food inflation and poverty persist, with the cost of a basic food basket having surged fivefold between 2019 and 2024.

‎“The Nigerian government has initiated commendable steps towards economic stabilization, and we are beginning to see results,” stated Mathew Verghis, World Bank Country Director for Nigeria. “However, macroeconomic stability alone does not suffice. The real measure of success will hinge on how these reforms enhance the daily lives of Nigerians, particularly the poor and vulnerable.”

‎The report outlined three urgent priorities for Nigeria: addressing food inflation by eliminating trade barriers and resolving structural challenges in agriculture and logistics; enhancing the efficiency and transparency of public expenditure; and expanding social protection systems through regular, domestically funded cash transfers and safety nets for at-risk households.

‎Samer Matta, the Bank’s Senior Economist for Nigeria, expressed a cautiously optimistic economic outlook, predicting growth to rise from 4.2 percent in 2025 to 4.4 percent by 2027, though he noted that inflation would continue to be a substantial hurdle.

‎“Food inflation remains the most significant burden on the impoverished,” Matta emphasized, underscoring the necessity for ongoing monetary discipline and sustained structural reforms to ensure that the benefits of economic recovery reach everyday Nigerians.