The World Bank has advised the Federal Government of Nigeria against reversing its ongoing economic reforms, cautioning that such actions could have severe negative implications for the country.
This warning comes in the wake of significant public discontent regarding the government’s economic policies, particularly the removal of fuel subsidies and the abolition of multiple foreign exchange systems, which were introduced on the first day of President Bola Tinubu’s administration.
At a press conference held in Abuja during the launch of the Nigeria Development Update (NDU) report, Dr. Ndiame Diop, the World Bank Country Director for Nigeria, acknowledged that while the reforms may cause immediate hardship for many citizens, they are essential for the nation’s long-term stability.
He stressed that reversing these reforms would be detrimental, stating, “Reversing these reforms would be detrimental and would spell doom for Nigeria.”
The economic landscape has shifted dramatically since the removal of the fuel subsidy, with the pump price of petrol surging from ₦198 to over ₦1,000 per litre.
Similarly, the naira has depreciated significantly, now trading above ₦1,700 for one dollar in the parallel market, compared to just below ₦600 prior to the reforms.
In support of the reforms, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, reiterated the government’s commitment to sustaining these policies.
He emphasized that any effort not sustained would be futile. “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 stated.
The focus, he noted, is on reducing inflation while ensuring that investments flow into critical sectors such as industry, which can create jobs. The government anticipates significant investments in the near future.
However, not everyone agrees with the World Bank’s stance. Andrew Mamedu, the Country Director of ActionAid Nigeria, criticized the World Bank’s comments as insulting to the millions of Nigerians enduring unprecedented economic hardship.
