The World Bank’s Vice President and Chief Economist, Mr. Indermit Gill, has called on the Nigerian government, led by President Bola Tinubu, to push ahead with its economic reforms, even as they create significant challenges for many Nigerians.
Speaking at the 30th Nigerian Economic Summit (#NES30) in Abuja on Monday, Gill emphasized the importance of continuing these reforms for long-term economic growth.
Gill praised the Central Bank of Nigeria (CBN) for its efforts to unify the country’s exchange rates, a move seen as crucial for stabilizing the economy. However, he also acknowledged the severe difficulties that many Nigerians, particularly the poor and vulnerable, are facing as a result of these changes.
He stressed the need for the government to implement affordable safety nets to protect those most affected by the reforms.
“These reforms are necessary to unlock Nigeria’s economic potential and that of Sub-Saharan Africa. Though they are painful now, they hold the key to future prosperity,” Gill remarked.
He further explained, “While the process is difficult, the long-term benefits are enormous, as demonstrated by countries like Norway, Poland, and Korea over the past 40 years. Nigeria’s previous reforms from 2003 to 2007 were exactly what the country needed, but they weren’t sustained. Today’s fiscal and monetary adjustments are challenging for everyone, particularly ordinary Nigerians who are dealing with rising food and transport costs.”
Gill urged the Nigerian government to take strong action to safeguard its most vulnerable citizens, noting that the lives of millions, including 110 million children, are at stake.
He highlighted three critical areas Nigeria’s policymakers must focus on: prioritizing non-oil exports, providing support for vulnerable households, and creating jobs, especially for the 12 million Nigerians expected to enter the workforce in the next decade.
“Nigeria’s current exchange rate is the most favorable it has been in 20 years, offering a great opportunity to build foreign reserves and guard against oil price shocks. I believe Governor Cardoso is already taking positive steps in this direction,” he noted.
Gill concluded by urging the government to reinvest savings from fuel subsidy removal and exchange rate adjustments into cost-effective social safety nets for the country’s most vulnerable citizens.
Stay updated by joining our WhatsApp channel: https://whatsapp.com/channel/0029VabITrvEAKW7DSkTfP0J