The World Bank has called on the Nigerian federal government to stick to its ongoing economic reforms, warning that reversing them could have serious consequences for the country.
This appeal comes as the government implements significant changes, such as the removal of the fuel subsidy and the abolition of multiple foreign exchange systems.
These policies were introduced on the first day of President Bola Tinubu’s administration.
While the government defends these measures, many Nigerians are feeling the impact of rising costs.
The pump price of fuel, which was ₦198 when the subsidy was removed, now exceeds ₦1,000.
Similarly, the naira, which traded below ₦600 for one dollar, has now risen to over ₦1,700 in the parallel market.
At the launch of the Nigeria Development Update (NDU) report in Abuja, Dr. Ndiame Diop, the World Bank Country Director for Nigeria, spoke about the reforms.
He acknowledged that while these reforms might bring hardship in the short term, they are crucial for Nigeria’s long-term stability.
Diop warned, “Reversing these reforms would be detrimental and would spell doom for Nigeria.”
His comments underscore the tension between necessary economic adjustments and the immediate hardships faced by citizens.
In support of the World Bank’s stance, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, reaffirmed the government’s commitment to the reforms.
“Any effort that is not sustained will be a waste,” he stated.
Edun highlighted ongoing discussions with the Governor of the Central Bank of Nigeria and the Minister of Budget and National Planning.
The focus, he explained, is on reducing inflation and ensuring that investments flow into critical sectors.
“We are expecting huge investments in the coming days,” he added, emphasizing the government’s plans for job creation.
This is not the first time the World Bank has voiced such concerns about Nigeria’s economic policies.
At the 30th Nigerian Economic Summit (NES30) held last week, Mr. Indermit Gill, the World Bank Senior Vice President and Chief Economist, urged the Tinubu administration to continue with these reforms.
He emphasized that Nigeria needs the next 10 to 15 years to establish itself as a leading economic power in sub-Saharan Africa.
Gill’s remarks highlight the World Bank’s long-term vision for Nigeria’s economic growth.
However, not everyone agrees with this approach.
Andrew Mamedu, the Country Director of ActionAid Nigeria, criticized the World Bank’s comments as insensitive.
He pointed out that millions of Nigerians are enduring unprecedented economic hardship due to these reforms.
“It is insulting to suggest that we should endure more suffering for the sake of economic stability,” Mamedu said.
His response reflects the frustration many citizens feel regarding the government’s policies.
Public sentiment around the fuel subsidy removal and the currency devaluation has been overwhelmingly negative.
Many Nigerians have taken to social media to express their dissatisfaction, sharing stories of how the rising costs are affecting their daily lives.
Families are struggling to afford basic necessities, and the cost of living has increased dramatically.
This economic strain has led to widespread protests and calls for the government to reconsider its approach.
As the government continues to implement these reforms, it faces mounting pressure to address the concerns of its citizens.
The rising cost of living, coupled with inflation, is a significant challenge for many families.
Dr. Diop acknowledged the hardships but stressed that the reforms are necessary for economic growth.
He stated that the long-term benefits would outweigh the short-term difficulties.
Yet, the challenge remains for the government to communicate these benefits effectively to the public.
