The World Bank said 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, as higher government revenues boosted state spending, particularly on infrastructure. The bank, in its latest Nigeria Development Update titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, said improved economic performance reflected stronger contributions from the services and agricultural sectors. It noted that aggregate state revenues increased by about 93 per cent in real terms during the period, while expenditure rose by approximately 92 per cent, creating additional fiscal space for state governments to expand capital investments. According to the report, Nigeria’s economic growth improved from 3.5 per cent in the first half of 2024 to 3.9 per cent in the corresponding period of 2025 before reaching 4.2 per cent in the first six months of 2026. The World Bank said the expansion helped stabilize the poverty rate for the first time since 2019, although persistent inflation continued to weaken household purchasing power. It added that Nigeria has recorded improvements in economic growth, public finances and its external position, but warned that sustained reforms and better public service delivery would be necessary to ensure that the benefits reached more citizens.