World Bank Vice President and Chief Economist, Mr. Indermit Gill, urged President Bola Tinubu not to reverse the critical economic reforms his administration has introduced, despite the hardships many Nigerians are currently experiencing.
Speaking at the opening session of the #NES30# in Abuja, yesterday, Mr. Gill emphasized that while these reforms are causing short-term discomfort, they are essential for long-term economic stability and growth.
“While also commending the Central Bank of Nigeria (CBN) for the unification of the exchange rates, Gill called on the federal government to provide cost-effective safety nets to protect the most vulnerable people from the harsh impact of the reforms.
Mr. Gill admitted that the reforms of the present administration had brought hardship to Nigerians, especially the vulnerable poor, but that it was the only way out for the economy.
To return the nation’s economy to the path of sustainable growth, Gill said Nigeria must sustain the reforms that, if allowed, would transform the Nigerian economy and that of the entire Sub-Saharan Africa.
He said, “I don’t know if you agree with me or you don’t agree with me. If he does that it will transform the economy of Sub-Saharan Africa.
It is very difficult to do these things, but the rewards are massive. This is the lesson from the last 40 years as well as countries such as Norway, Poland, and Korea.
“I am going to say something unpopular perhaps: Nigeria’s reforms from 2003 to 2007 were exactly what you needed, but they were not sustained. Today’s fiscal and monetary reforms are hurting everyone, especially ordinary Nigerians who are struggling with high prices of food and transport.
“The government must do everything in its power to protect the most vulnerable citizens against hardships because their lives and the lives of 110 million children depend on it.
“You must stay the course of the reforms because Nigeria’s future and the future of these 110 million children depend on it. During the coming years, Nigeria’s policymakers have three key options. The first is to prioritize non-oil exports.
“The exchange rate that Nigeria now has is the most effective in 20 years.
It is a great opportunity. You must build foreign reserves as a buffer against oil volatility. Again, I think Governor Cardoso is doing many of these things, and I think he should be encouraged.
“Second, every vulnerable household needs government support to be able to survive the current difficulties. Install cost-effective safety nets to protect the most vulnerable people. Financing it from some of the savings from fuel subsidies and the exchange rate savings.
“Nigerians’ need for jobs is immense. In the next ten years, more than 12 million Nigerians would enter the workforce. You need to generate jobs for them. You need to attract investments, especially in the non-oil sector.”