Bauchi State Governor Bala Mohammed has openly challenged the World Bank’s support for the Nigerian government’s ongoing economic reforms, claiming that these policies are failing to address the pressing needs of ordinary Nigerians.
This confrontation occurred during the launch of the Nigeria Development Update (NDU) report in Abuja.
World Bank Country Director Dr. Ndiame Diop had earlier warned that reversing the federal government’s current economic reforms would lead to severe consequences for the country.
Dr. Diop stressed that while these reforms may be difficult, they are essential for Nigeria’s long-term stability.
However, Governor Mohammed disagreed, calling for a review of the reforms, which he believes are not delivering the promised results.
“When the reforms started, we supported the President,” he said.
“Now, we see that people are hungry, and the situation is dire. We should not be dogmatic about this issue.”
The governor highlighted the impact of inflation on the population, asserting that many people are suffering under the current policies.
He stated, “The macroeconomic policies causing inflation need to be looked into. People are not enjoying these reforms.”
According to Mohammed, the purchasing power of Nigerians has significantly decreased, leading to widespread hardship.
“If these policies are not working, we must review them. Let us not engage in blackmail,” he insisted.
His comments reflect a growing frustration among state leaders regarding the federal government’s economic strategies.
The governor pointed out that high power tariffs are making it even harder for citizens to cope.
“We are on the brink of being lynched,” he warned. “These policies are not working. We need a review.”
However, Diop had highlighted some positive developments in Nigeria’s economy, such as improvements in government revenue.
He explained that the debt-to-revenue ratio has decreased from 100% in 2022 to 60% currently.
Despite these encouraging signs, he acknowledged the challenges Nigerians face with high inflation and rising living costs.
“The effort must be accompanied by reforms that enable the private sector to create more and better jobs,” he added.
“Progress is real but so are the struggles of many citizens. We need to stick to the plan and keep moving forward.”
Diop urged the government to channel the gains from these reforms into social safety nets to help those struggling the most.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, echoed Diop’s sentiments.
He stated that any efforts that are not sustained would be wasted.
“Our discussions have focused on how to reduce inflation while attracting investments to the real sectors of the economy,” he explained.
Edun emphasized the importance of using savings from the removal of fuel subsidies to fund essential services like education and health.
When questioned about the removal of the fuel subsidy, he clarified that the pricing is now based on market conditions.
“This is an opportunity we cannot afford to let slip,” he remarked.
Meanwhile, Central Bank of Nigeria Governor Mr. Olayemi Cardoso addressed the issue of foreign exchange rates.
He clarified that the CBN does not determine the rates; rather, they are influenced by market fundamentals.
Cardoso stated, “We will ensure that we stick to orthodox central banking principles.”
He expressed optimism about improving Nigeria’s foreign exchange inflows, citing an increase from $200 million to $600 million.
“The moderation of the FX rate should help discourage unnecessary imports,” he noted.
Dr. Indermit Gill, World Bank Vice President and Chief Economist, shared his cautious outlook on Nigeria’s economic future.
He indicated that it could take the country 10 to 15 years to emerge from its current challenges.
