The World Bank has cautioned the Nigerian government against reversing its ongoing economic reforms, emphasizing that such a move would have severe consequences for the nation.
Ndiame Diop, World Bank Country Director for Nigeria, on Thursday, stressed that while the reforms may cause short-term hardship, they are crucial for Nigeria’s long-term stability.
“Reversing these reforms would be detrimental and would spell doom for Nigeria,” Diop warned, speaking at the launch of the Nigeria Development Update report in Abuja .
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The reforms, introduced by President Bola Ahmed Tinubu’s administration, include removing fuel subsidies and abolishing multiple foreign exchange systems.
Despite widespread complaints about the reforms’ impact on the masses, the Federal Government has defended its policies.
Fuel prices have skyrocketed from N198 to over N1,000, while the naira has depreciated to N1,700 against the US dollar in the parallel market.
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Also, Minister of Finance, Wale Edun, reaffirmed the government’s commitment to sustaining the reforms.
“Any effort that is not sustained will be a waste,” Edun said, highlighting discussions with the Central Bank Governor and Minister of Budget and National Planning to tackle inflation and attract investments.
Edun emphasized the government’s focus on reducing inflation and channeling investments into critical sectors like industry, where job creation is anticipated.
The World Bank previously urged Nigeria to maintain its reforms, with Senior Vice President Indermit Gill stating that the country requires 10-15 years to become a leading economic power.
However, ActionAid Nigeria’s Country Director, Andrew Mamedu criticized Gill’s comments, calling them insulting to Nigerians facing unprecedented economic hardship.
The World Bank has pledged support for Nigeria’s reforms, approving a $2.25 billion financing package to stabilize the economy and scale up support for the poor.
