The World Bank has called on the Nigerian government, led by President Bola Tinubu, to persist with essential economic reforms despite the increasing hardship faced by many citizens. This appeal was made during the ongoing Nigerian Economic Summit, where senior officials emphasized the urgency of implementing strategic reforms to foster economic recovery and stability.
Gill stressed the importance of establishing a competitive exchange rate to enhance the private sector's ability to thrive in a diversified economy.
The World Bank noted that while the Nigerian government has initiated a cash transfer program benefiting approximately five million households, this effort must be expanded to reach at least ten million households. This initiative aims to alleviate the burden of rising inflation on those most affected by recent economic changes.
The World Bank underscored the need for transparent accounting and allocation of oil revenues to ensure that Nigeria's wealth benefits all citizens rather than just a select few.
Gill warned that failure to implement these reforms could jeopardize not only Nigeria’s economic future but also set back progress across the African continent. He reiterated that past reforms from 2003 to 2007, which were not sustained, serve as a cautionary tale for current policymakers.
President Tinubu, represented at the summit by Vice President Kashim Shettima, acknowledged the challenges posed by high inflation and rising living costs but expressed optimism about Nigeria's potential for recovery through strategic partnerships and continued reform efforts. He emphasized that inclusivity in economic growth is crucial, stating, "Our competitiveness is not just about improving our standing on global indices; it is about ensuring that every citizen can benefit from economic opportunities."
The World Bank's call for sustained reform comes at a time when many Nigerians are grappling with severe economic pressures following the removal of fuel subsidies and unification of foreign exchange rates. While these measures are projected to save Nigeria approximately N3.9 trillion in 2023 alone, they have also led to significant increases in living costs.
Gill noted that without adequate buffers to cushion these impacts, millions more Nigerians could fall into poverty. He urged Nigeria's elites to unite in support of these reforms, emphasizing that their long-term benefits would extend beyond immediate hardships.
The World Bank reaffirmed its commitment to assist Nigeria during this transformative period and will continue to work closely with the government to ensure that vulnerable populations receive necessary support as reforms take effect.