World Bank Demands Fiscal Clarity as Nigeria’s Reforms Show Early Gains
While Nigeria’s economy is showing early signs of stabilisation, the World Bank warns that without greater fiscal transparency and disciplined spending, the benefits may never reach everyday citizens. In its October 2025 Nigeria Development Update (NDU), the Bank praises recent reforms, including subsidy removals, tax tweaks, and stronger revenue mobilisation that brought economic growth of 3.9 % in H1, reserves above $42 billion, and public debt down to 39.8 % of GDP.
Yet the report emphasises that macro achievements are fragile if public funds are not properly managed. It recommends stricter oversight of FAAC deductions, open budgeting, and aligning expenditure with development goals like health, education and infrastructure.
The Bank also flagged rising costs of revenue collection. In 2024, Combined FAAC deductions to revenue agencies more than doubled, jumping from ₦871 billion to ₦1.78 trillion, limiting government capacity to invest in critical projects.
The weak institutions, corruption, and overlapping authority among federal, state and local governments make delivery of public services especially challenging. President Tinubu’s administration has already faced calls to ensure that new programs are transparent and that budget promises are fulfilled.
