By Mary Izuaka

 

The presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has said the recent World Bank Nigeria Development Update should not be misinterpreted by the federal government as evidence that Nigerians’ living standards are improving.

Mr Obi, in a statement on Monday, said while the report noted improvements in a few macroeconomic indicators, it does not reflect the reality of poverty, unemployment and inequality in the country.

On Sunday, President Bola Tinubu applauded the latest World Bank Nigeria Development Update, stating that the findings are a testament to the fact that the country’s economic reforms are bearing fruit.

Since taking office in 2023, Mr Tinubu has pursued an array of reforms aimed at speeding up economic growth in Africa’s most populous country. Those reforms include removal of costly fuel subsidies, unification of exchange rates, revamp of the nation’s tax system and recapitalisation of the banking and insurance sectors.

In the report issued last Thursday, the World Bank observed that the economy expanded by 4.2 per cent in the first half of 2026, up from 3.9 per cent in the same period of last year, despite the sweeping impact of the Middle East crisis.

It projected the country’s growth to average at least 4.4 per cent this year through 2028. The World Bank expects inflation, which fell from 27.6 per cent in January 2025 to 15.2 per cent in December 2025, to ease to about 12 per cent by 2028.

The report stated that the reforms have helped raise the federation revenue by 69 per cent in real terms between 2023 and 2025, with states as the largest beneficiaries.

It also noted that Nigeria’s internally generated revenue grew in real terms in 31 of 35 states, with 21 states cutting back their debt-to-GDP ratio between 2021 and 2025. It expects Nigeria’s overall public debt to fall from 40 per cent of GDP in 2025 to 38.1 per cent in 2026.

In his reaction on Monday, Mr Obi said the criteria for economic development are whether poverty is declining, whether jobs are created and whether inequality is reducing.

“In the case of Nigeria under President Tinubu, the answer is no. So-called ‘economic stability’ has not resulted in higher living standards, improved employment opportunities, and reduction of poverty and inequality across Nigeria,” Mr Obi said.

He said an economy is not truly stabilised simply because government revenue increases, foreign reserves strengthen, or Gross Domestic Product (GDP) grows.

“Stability exists when citizens can afford food, obtain healthcare, provide education for their children, and live with dignity.”

“What comfort does higher revenue offer a mother who cannot provide her children with a nutritious meal? What does higher government revenue mean to a family forced to choose between purchasing food and paying for medicine? What benefit do celebrated reforms provide when ordinary Nigerians continue to bear intolerable costs and hardship?” he asked.

Mr Obi cited the World Bank report titled ‘Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities’, noting that the federal government spent N7.7 trillion on debt interest payments in the first half of 2026, representing 124.2 per cent of total revenue of N6.2 trillion within the same period.

He said debt interest payments exceeded revenue by about N1.5 trillion, questioning the sustainability of the debt despite increased revenue since 2023.

“Imagine a situation where borrowing and revenue have exponentially increased but expenditure on capital projects reduced by about N700 billion in the first half of this year. In comparison, the APC-led Federal Government spends about 11 times more on interest payments than on capital projects. The explanation is clearly attributed to reckless borrowing, corruption, and incompetence of the President Bola Tinubu-led APC government.

“President Bola Tinubu and his incompetent team must recognise that intentionally presenting and projecting incomplete economic statistics cannot replace the critical measure of how reform impacts the welfare of the people. A government cannot expect citizens to applaud statistics while they struggle to survive the effects of its policies.

“How do you celebrate when about 140 million Nigerians are classified as multidimensionally poor, with a recent UNDP report listing Nigeria as one of the countries where gains made in reducing poverty have been reversed,” Mr Obi said.

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He said reforms should be evaluated by their consequences for the people, particularly the poorest and most vulnerable.

He argued that reforms should be evaluated according to their consequences for the people, particularly the poorest and most vulnerable.

“Measures that demand substantial sacrifices from citizens must deliver benefits that are visible, measurable, and broadly shared—not misrepresented reports and official celebrations.”

He said the World Bank’s assessment should compel this government to review its reform and focus attention on the welfare of Nigerians and not indulge in unfounded self-congratulation.

“The true test is whether Nigerians are eating better, living better, and escaping poverty. The definitive measure of economic success is not the apparent stability of the economy on paper, but the quality of people’s lives.

“Nigeria deserves an economy that serves its citizens, not one that continually sacrifices citizens’ well-being for ‘macroeconomic stability’, an economy that ends mass poverty, reduces inequality, and creates enough jobs for our youths,” he said.