By Stella Odueme
The Tinubu Media Support Group (TMSG) has described the latest World Bank report on Nigeria as evidence of improving economic stability, attributing the development to reforms introduced by President Bola Tinubu’s administration.
The group said the report highlighted significant improvements in government revenues, particularly at the state level, noting that state governments recorded a 93 per cent increase in revenue in real terms between 2023 and 2025, despite rising domestic debt servicing costs.
In a statement signed by its Chairman, Emeka Nwankpa, and Secretary, Dapo Okubanjo, TMSG said the World Bank report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, presented a balanced assessment of Nigeria’s economic situation rather than an entirely negative picture.
The group was reacting to concerns over the World Bank’s revelation that Nigeria’s interest payments rose to N7.7 trillion in the first half of 2026, compared with N5.6 trillion recorded during the corresponding period of 2025.
It, however, faulted critics for overlooking what it described as positive economic indicators contained in the report, including improving economic growth and the stabilisation of poverty levels.
“What we find confounding is how those critics are acting oblivious to the Bank’s very positive affirmation of an economy that is now largely stable, with poverty levels stabilising for the first time since 2019,” the statement said.
According to TMSG, the World Bank reported that Nigeria’s economy grew by 4.2 per cent in the first half of 2026, up from 3.9 per cent in the corresponding period of 2025.
It added that the bank projected economic growth of 4.4 per cent between 2026 and 2028, while inflation was expected to decline to about 12 per cent by 2028 from the 2025 level of 15.2 per cent.
The group said the projections were significant, particularly in view of the impact of the ongoing conflict in the Middle East on the global economy.
TMSG further noted that the World Bank attributed a 69 per cent increase in federation revenues in real terms between 2023 and 2025 to the Tinubu administration’s reforms, with state governments emerging as the biggest beneficiaries.
It said the improved revenue position had enabled at least 21 states to significantly reduce their debt-to-GDP ratios between 2021 and 2025.
The group added that increased Federation Account Allocation Committee (FAAC) disbursements had also provided opportunities for 31 states to improve their internally generated revenue, according to the report.
On the rising cost of debt servicing, TMSG acknowledged the World Bank’s concerns, noting that the issue was largely associated with domestic borrowing.
It said Nigeria’s domestic debt stood at N91.59 trillion as of June 2026, accounting for more than 57 per cent of the country’s public debt profile but generating approximately 72 per cent of total interest payments.
The group explained that the domestic debt stock comprised N64.88 trillion in Federal Government bonds, N22.11 trillion in securitised Ways and Means advances inherited from previous administrations, and N4.59 trillion in debts owed collectively by the 36 states and the Federal Capital Territory.
According to the statement, domestic borrowing is more expensive than concessional external loans because the government must offer competitive yields to attract investors to bonds and treasury bills.
“Domestic borrowings make up more than 57 per cent of the country’s public debt profile but generate about 72 per cent of interest payments on debt servicing,” the group said.
TMSG, however, expressed optimism that the recent decision by the Central Bank of Nigeria to reduce its benchmark interest rate from 26.5 per cent to 23 per cent would help lower the cost of servicing domestic debt.
It said the development could reduce the government’s domestic debt servicing burden, particularly in the second half of 2026.
The group maintained that the World Bank’s findings should be assessed holistically, arguing that the improvements in government revenues, economic growth and state-level fiscal performance reflected the effects of the Tinubu administration’s economic reforms.