The World Bank has warned that reversing the reforms initiated by President Bola Tinubu’s administration would spell disaster for Nigeria.
Ndiame Diop, the World Bank’s country director for Nigeria, issued this warning at the launch of the Nigeria Development Update (NDU) report in Abuja.
Diop acknowledged that while the reforms may be challenging, they are essential for the nation’s long-term stability.
“We know that many Nigerians are struggling with high inflation and a rising cost of living. Progress is indeed tangible. However, the difficulties faced by many citizens are equally real, which the team will elaborate on later,” he stated.
“The report’s message is clear: we need to adhere to the plan and continue to move forward. Regressing or opposing the reforms would only exacerbate the situation.
“Staying the course is vital for securing a better future for all Nigerians. However, this effort must be complemented by reforms that enable the private sector to create more and better jobs, with targeted support for youth and women.”
Also addressing the event, Wale Edun, the minister of finance and coordinating minister of the economy, underscored the importance of the reforms.
“Any effort that is not sustained will be futile,” he remarked.
“Along with the governor of the Central Bank of Nigeria and the minister of budget and national planning, we have been discussing how to maintain our course.”
Regarding inflation, Edun stated that the government is prioritising market pricing and has engaged with labour unions to explain why we cannot afford to let this opportunity slip away.
Furthermore, Edun noted that every day without the petrol subsidy means more funds available for education, healthcare, and other essential expenditures.
In his address, Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), emphasised the significance of promoting exports in light of the exchange rate adjustments.
“The moderation in the foreign exchange rate should make our goods more competitive for export and discourage the importation of unnecessary items,” he remarked.
The launched report indicated that although Nigeria’s labour force is shifting towards services, the available jobs tend to be low productivity.
Additionally, the report stated that there is an urgent need for poverty-reducing labour market policies to harness the potential of Nigeria’s youthful population.
“In the next ten years, the number of Nigerians aged 15 to 24 is expected to increase by more than 12 million,” the report revealed.
“The high number of working-age individuals relative to those who are too young or too old to work provides Nigeria with a significant demographic dividend. However, the lack of productive jobs could turn this demographic dividend into a demographic burden.”
The report also highlighted the necessity for structural reforms, such as reducing trade barriers, improving infrastructure, enhancing the business environment, and supporting household enterprises to unlock Nigeria’s inclusive growth.