Babatunji Wusu –
- Economic Consistency: The World Bank urges Nigeria to sustain its economic reforms despite current hardships.
- Acknowledgment of Hardships: Reforms have significantly impacted the poor, but are deemed necessary for recovery.
- Praise for CBN: The unification of exchange rates is commended as a positive step.
- Safety Nets Needed: The government should implement effective safety nets for vulnerable populations.
- Urgent Job Creation: There is a pressing need to generate jobs for the rapidly growing workforce.
- Three Key Options: Focus on non-oil exports, support vulnerable households, and attract investments.
The World Bank has urged Nigeria to maintain consistency in its economic policies despite the hardships currently faced by its citizens. This advice was given by Indermit Gill, Vice President and Chief Economist of the World Bank, during the opening session of the #NES30# conference in Abuja.
Gill emphasized the importance of sustaining economic reforms to return Nigeria to a path of sustainable growth. While he acknowledged that the current administration’s reforms have caused significant difficulties, particularly for the poor, he argued that these measures are essential for the economy’s recovery. He stated, “If these reforms are sustained, they could transform the economy of Sub-Saharan Africa.”
Gill praised the Central Bank of Nigeria (CBN) for unifying exchange rates and urged the federal government to establish cost-effective safety nets to protect the most vulnerable populations from the adverse effects of these reforms. He remarked, “It is difficult to implement these changes, but the rewards can be substantial, as evidenced by the experiences of countries like Norway, Poland, and South Korea.”
He pointed out that past reforms in Nigeria from 2003 to 2007 were necessary but not sustained, leading to today’s fiscal and monetary challenges. Gill stressed the need for the government to support vulnerable citizens, as their lives—and those of 110 million children—depend on effective measures.
He outlined three key options for policymakers in the coming years:
- Prioritize Non-Oil Exports: Gill highlighted the current exchange rate as the most effective in two decades, presenting a unique opportunity to build foreign reserves as a buffer against oil price volatility.
- Provide Support to Vulnerable Households: He recommended the establishment of safety nets financed by savings from fuel subsidies and exchange rate adjustments.
- Create Jobs: With over 12 million Nigerians expected to enter the workforce in the next decade, there is an urgent need to generate jobs and attract investments, particularly in the non-oil sector.
Gill concluded by reinforcing the idea that the success of Nigeria’s reforms is crucial for its future and the well-being of its citizens.
