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World Bank Warns Tinubu’s Government Against Reversing Economic Reforms
Diop cautioned that “reversing these reforms would be detrimental and would spell doom for Nigeria.”
Abuja, Nigeria– The World Bank has warned the Nigerian federal government against reversing its ongoing economic reforms, emphasised that such a move could have negative effects on the country’s economic stability.
Speaking at the launch of the Nigeria Development Update (NDU) report in Abuja on Thursday, World Bank Country Director for Nigeria, Dr. Ndiame Diop, highlighted the critical nature of these reforms despite the immediate hardships they may impose on the populace.
Since the removal of the fuel subsidy, the price of petrol has surged from N198 to over N1,000 per liter. Simultaneously, the naira’s value has plummeted, trading above N1,700 against the dollar in the parallel market, compared to below N600 prior to the reforms.
Despite the federal government’s defense of these policies, many Nigerians have expressed concerns about the escalating costs and their impact on daily life.
Diop cautioned that “reversing these reforms would be detrimental and would spell doom for Nigeria.”
Similarly, Finance Minister and Coordinating Minister of the Economy, Mr. Wale Edun, underscored the federal government’s commitment to maintaining its reforms.
“Any effort that is not sustained will be a waste. 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, tackle inflation, and ensure we move in the right direction,” he stated.
Edun further elaborated that the government’s focus is on reducing inflation while promoting investments in critical sectors such as industry, where job creation is anticipated as the country expects significant investments in the near future.
This is not the first instance of the World Bank taking a stance on Nigeria. At the 30th Nigerian Economic Summit (NES30) in Abuja last week, World Bank Senior Vice President and Chief Economist, Mr. Indermit Gill, urged the Tinubu administration to continue its ongoing reforms despite the current hardships.
He noted that Nigeria needs the next 10 to 15 years to establish itself as a leading economic power in sub-Saharan Africa and on the global stage.
However, Andrew Mamedu, Country Director of ActionAid Nigeria, criticized Gill’s comments, asserting that they were insulting to the millions of Nigerians enduring unprecedented economic difficulties.