Dont make U-turn on current reforms – World Bank advices Tinubu

The World Bank has advised the federal government of Nigeria not to reverse the ongoing economic reforms, despite widespread concerns about their impact on the population. These reforms, which include the removal of fuel subsidies and the unification of the foreign exchange system, were introduced by President Bola Tinubu’s administration on its first day in office.

Since the reforms, fuel prices have skyrocketed from N198 to over N1,000 per litre, while the naira has depreciated from below N600 to over N1,700 per dollar in the parallel market. Many Nigerians have expressed concerns over the burden these policies place on the masses.

At the launch of the Nigeria Development Update (NDU) report in Abuja, the World Bank Country Director for Nigeria, Dr. Ndiame Diop, acknowledged the difficulties the reforms present but emphasized their necessity for the country’s long-term economic 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.