The World Bank has warned that reversing the reforms by President Bola Tinubu’s administration will spell doom for Nigeria.
World Bank country director for Nigeria, Ndiame Diop, gave the warning at the launch of the Nigeria Development Update (NDU) report in Abuja.
Diop also said while the reforms may be challenging, they are crucial for the nation’s long-term stability.
“We know that many Nigerians are struggling with high inflation and rising cost of living. So, progress is real. But so are the struggles of many citizens, which the team actually will elaborate on later,” he said.
“The report’s message is clear. We need to stick to the plan and keep moving forward. Turning back or opposing the reforms would only make things worse.
“Staying the course is essential for securing a better future for all Nigerians. But the effort must be accompanied by reforms enabling the private sector to create more and better jobs. With targeted support to youth and women.”
Also speaking at the event, Wale Edun, minister of finance and coordinating minister of the economy, said the reforms are important.
“Any effort that is not sustained will be a waste,” he said.
“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.”
On inflation, Edun said the government is prioritising market pricing and “has met with labour unions to explain why we cannot afford to let this opportunity slip”.
Also, Edun said every day without petrol subsidy means more funds available for education, healthcare, and other essential expenditures.
On his part, Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), highlighted the importance of promoting exports in light of the exchange rate adjustments.
“The moderation in the FX rate should make our goods more competitive for export and discourage the importation of unnecessary goods,” he said
The report launched showed that even though Nigeria’s labour force is shifting to service, available jobs are low productivity.
Also, the report said poverty-reducing labour market policies are needed urgently to harness the potential of Nigeria’s young population.
“In the next 10 years, the number of 15-24-year-old Nigerians are set to increase by more than 12 million,” the report said.
“The high number of working-age people relative to those who are too young or too old to work give Nigeria a sizeable demographic dividend. Lack of productive jobs could turn the demographic dividend into a demographic burden.”
The report also highlighted the need for structural reforms, such as reducing trade barriers, improving infrastructure, improving the business environment and supporting household businesses to unleash Nigeria’s inclusive growth.
