Don't reverse current reforms to avoid doom - World Bank warns FG

The World Bank has warned the President Bola Tinubu-led administration not to revert the ongoing economic reforms to avoid triggering negative implications for the country.

Recall that the President announced the termination of the fuel subsidy regime on his first day in office on May 29, 2023. He followed it up with the abolishment of the multiple exchange systems some weeks after.

However, the two policies among others initiated by the incumbent government have plunged many citizens into excruciating hardship as prices of petrol, food, and other household commodities continue to accelerate, resulting in hyperinflation.

The Nigerian National Petroleum Company Limited (NNPCL) recently jacked up the pump price of petrol per litre at its retail outlets across the country from ₦858 to over ₦1,0000.

Recall that fuel was selling for ₦198 before Tinubu declared that ''subsidy is gone.'' Similarly, the naira which traded below ₦600 for one dollar is now above ₦1,700 in the parallel market since the floatation.

World Bank asks FG not to reverse reforms despite hardship

Many Nigerians have continued to appeal to the President to revert some of these policies to provide relief for the suffering masses.

However, the Federal Government has repeatedly defended its reform policies, insisting they're necessary steps to steer the Nigerian economy on the right trajectory.

The sentiment was also echoed by Dr Ndiame Diop, the World Bank Country Director for Nigeria, who spoke at the launch of the Nigeria Development Update (NDU) report in Abuja on Thursday, October 17, 2024.

Diop warned that, “Reversing these reforms would be detrimental and would spell doom for Nigeria.”

At the same time, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, spoke on the government's commitment to sustain the 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,” he said.

Edun further explained that the government remained focused on reducing inflation while ensuring investments flow into critical sectors, where jobs can be created as the country is expecting huge investments in the coming days.

World Bank doubles down on advice to FG

This is the second time in one week the World Bank has taken such a stance on Nigerians.

The World Bank Senior Vice President and Chief Economist, Indermit Gill, who spoke at the 30th Nigerian Economic Summit (NES30), in Abuja last week, urged the Tinubu administration to sustain ongoing reforms despite the hardship.

Gill predicted that Nigeria needs to sustain the ongoing reforms for 15 years to establish itself as a leading economic power in sub-Saharan Africa and on the global stage.