TMSG hails Tinubu’s reforms as World Bank reports 93% rise in state revenues
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TMSG hails Tinubu’s reforms as World Bank reports 93% rise in state revenues
By Alabidun Shuaib AbdulRahman
The Tinubu Media Support Group, TMSG has said the World Bank’s latest report on Nigeria validates the economic reforms introduced by President Bola Tinubu, citing increased government revenues, economic growth and improved fiscal capacity across the states.
The group, however, acknowledged concerns over rising debt-servicing costs, following reports that interest payments increased to N7.7tn in the first half of 2026 from N5.6tn recorded in the corresponding period of 2025.
In a statement signed by its Chairman, Emeka Nwankpa, and Secretary, Dapo Okubanjo, TMSG said the World Bank’s report, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, contained positive developments that should not be overlooked.
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According to the group, state government revenues rose by 93 per cent in real terms between 2023 and 2025, while overall federation revenues increased by 69 per cent within the same period.
It attributed the improvements to the Tinubu administration’s economic reforms, which it said had strengthened government finances and increased allocations to subnational governments.
TMSG said, “What we, however, found 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 group also cited the World Bank’s assessment that 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.
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 15.2 per cent in 2025.
According to TMSG, increased allocations from the Federation Account Allocation Committee had also helped states strengthen their finances and improve internally generated revenue.
The group said the World Bank report showed that at least 21 states reduced their debt-to-gross domestic product ratios between 2021 and 2025, while 31 states recorded growth in internally generated revenue.
It argued that the developments demonstrated how increased government revenues could provide states with greater capacity to meet their obligations and fund development projects.
However, TMSG acknowledged the World Bank’s concerns about the rising cost of servicing domestic debt, noting that domestic borrowing accounted for more than 57 per cent of Nigeria’s public debt profile but generated approximately 72 per cent of interest payments.
The group said Nigeria’s domestic debt stock stood at N91.59tn as of June 2026, comprising Federal Government bonds of N64.88tn, securitised Ways and Means advances of N22.11tn and subnational debt of N4.59tn owed collectively by the 36 states and the Federal Capital Territory.
It explained that domestic borrowing was more expensive than concessional external loans because the government had to offer competitive yields to attract investors to its bonds and treasury bills.
The statement added that the high cost of borrowing had contributed significantly to the government’s debt-servicing burden.
TMSG, however, expressed optimism that the Central Bank of Nigeria’s reported reduction of its benchmark interest rate from 26.5 per cent to 23 per cent would help lower borrowing costs.
“With the CBN’s recent decision to cut the benchmark rate from 26.5 per cent to 23 per cent, we are bound to see a reduction in the cost of servicing local debts, which will ultimately lower the government’s domestic debt-servicing burden, especially in the second half of the year,” the group said.
It maintained that although the rising cost of debt servicing remained a concern, the reported increase in government revenues and economic growth showed that the reforms were producing positive fiscal outcomes.
The group urged Nigerians to consider the broader findings of the World Bank report rather than focus exclusively on the increase in interest payments.
