The World Bank has called on the Federal Government of Nigeria to persist with its current economic reforms, despite the severe hardships being felt by many citizens. Speaking at the 30th Nigerian Economic Summit (NES30) in Abuja, World Bank Vice President and Chief Economist, Indermit Gill, commended the government’s efforts, particularly the unification of the exchange rates by the Central Bank of Nigeria (CBN), but urged the government to implement measures to protect the most vulnerable from the negative effects of these reforms.
Gill acknowledged that the economic changes under President Bola Tinubu’s administration had intensified the difficulties faced by ordinary Nigerians, especially the poor, but stressed that the reforms are crucial for long-term economic recovery. He emphasized that maintaining these reforms is essential to revitalize Nigeria’s economy and could positively impact the broader Sub-Saharan African region.
“The reforms may be difficult, but the rewards could be transformative. This is a lesson we’ve learned from countries like Norway, Poland, and Korea over the last 40 years,” Gill said. He cited Nigeria’s reforms from 2003 to 2007 as a missed opportunity, as they were not sustained, and warned that allowing the current reforms to fail would only worsen the country’s economic challenges.
Gill highlighted three key priorities for Nigerian policymakers:
- Non-oil Exports: He emphasized that Nigeria should focus on boosting its non-oil exports to build a more diversified and resilient economy. He pointed out that the current exchange rate is the most effective in 20 years, offering a unique opportunity to increase foreign reserves and protect against the volatility of oil prices.
- Support for Vulnerable Households: The economist stressed the urgent need for the government to install cost-effective safety nets to shield the most vulnerable Nigerians from the harsh effects of economic reforms. He recommended using savings from fuel subsidy removals and exchange rate gains to fund these programs.
- Job Creation: With over 12 million Nigerians expected to join the workforce in the next decade, Gill urged the government to focus on generating jobs, particularly in the non-oil sector. He stressed that attracting investments will be crucial to meet this employment demand.
Addressing the ongoing economic hardships, Gill noted that many Nigerians are struggling with rising food and transportation costs, but stressed that the government must “stay the course” with its reforms for the long-term benefits. He emphasized that the future of Nigeria and its young population—more than 110 million children—depends on the success of these economic strategies.
While praising the efforts of CBN Governor Yemi Cardoso, Gill reiterated that the reforms, though painful in the short term, would eventually pave the way for economic stability and growth. He urged Nigerian leaders to prioritize the well-being of their most vulnerable citizens as the country navigates this difficult economic transition.
