World Bank Reveals Why Nigeria Should Continue Current Economic Reforms

The World Bank has urged the federal government not to reverse the ongoing economic reforms, warning that it may have negative implications for the country.

Removal of fuel subsidy and abolishing multiple foreign exchange systems were policies introduced by the current administration on day one in office.

While the federal government has consistently defended the policies, many Nigerians have complained about their implications on the masses.

Pump price of fuel which was N198 at the time the government of President Bola Tinubu removed subsidy, now sells above N1,000, while naira which traded below N600 for one dollar is now above N1,700 in the parallel market.

Speaking at the launch of the Nigeria Development Update (NDU) report in Abuja on Thursday, the World Bank Country Director for Nigeria, Dr. Ndiame Diop, said while the reforms may bring hardship, they were necessary for the nation’s long-term stability.

Diop warned that, “Reversing these reforms would be detrimental and would spell doom for Nigeria.”

In the same vein, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, emphasized the commitment of the federal government to sustain its reforms.

“Any effort that is not sustained will be a waste. Together with the Governor of the Central Bank of Nigeria and the Minister of Budget and National Planning, we’ve been discussing how to stay on course, tackle inflation and ensure we move in the right direction.”

Edun further explained that the government’s focus is on reducing inflation while ensuring investments flow into critical sectors such as industry, where jobs can be created as the country is expecting huge investments in the coming days.

This is not the first time that World Bank would take such stance on Nigeria.

At the 30th Nigerian Economic Summit (NES30) in Abuja last week, the World Bank Senior Vice President and Chief Economist, Mr. Indermit Gill, urged the Tinubu administration to sustain ongoing reforms despite the hardship.

He said Nigeria requires the next 10 to 15 years to establish itself as a leading economic power, in sub-Saharan Africa and the global stage.

But Country Director of ActionAid Nigeria, Andrew Mamedu, rejected this, saying the World Bank chief’s comment was insulting to the millions of Nigerians living through unprecedented economic hardship.