KEY POINTS
- World Bank advises Nigeria to keep up the economic reforms for between 10 and 15 years.
- The current reforms are meant to reverse losses caused by subsidies and currency disparity.
- Removal of subsidy and forex adjustment drive Nigeria’s inflation.
Giving this importance, World Bank believes that Nigeria need to sustain its ongoing economic reforms for the next 10–15 years to ensure sustained growth to climb on the world markets.
According to Indermit Gill, a Senior Vice President of World Bank Group, speaking at the 30th Nigerian Economic Summit, in Abuja, these reforms are needed if Nigeria is to set itself up as a competitive economy, both in sub-Saharan Africa and globally.
The theme for the ongoing summit, according to the Nigerian Economic Summit Group, which organized the summit in collaboration with the Ministry of Budget and National Planning, is ‘Collaborative Action for Growth, Competitiveness and Stability.’
The geopolitical and economic challenges inflation
Nigeria’s economic powerhouse is feeling the pinch, with Gills admitting that the country faces numerous challenges, from a 32.15 percent inflation rate brought on by the removal of fuel subsidies that have also had knock on effects on transportation and producer prices.
Furthermore, the foreign exchange market unification as felicitated the currency fluctuations, which has also perpetuated the high cost of living index due to high financial costs on goods and service.
The economic reforms are difficult, but are needed to reverse losses that were costing the elite billions of naira from fuel subsidies to multiple exchange rates, he added.
Consistency and long‑term vision are called for
Gill reminded Nigeria not to become disillusioned with these reforms, and that a failure to implement them would undermine future growth. *Going forward he says, “Nigeria will need to stay the course of current economic reforms for at least the next 10 to 15 years to transform its economy.”
Reiterating the importance of consistency, he said, though briefly interrupted by reactions from the audience, “And if these reforms are sustained, Nigeria will complete its economic transformation and become an engine of growth in sub Saharan Africa.”
According to The Punch, The reforms will not be a walk in the park, Gill said, but their eventual benefits would be substantial, giving Nigeria leadership in the region and the status of an emerging economic power in the world.
The World Bank’s recommendations are in line with the actions being taken by the Nigerian government to stabilize the economy in terms of growth, competitiveness and sustainable development.
