Nigerian economists and financial experts have faulted the World Bank’s recommendation that Nigeria should push ahead with the ongoing economic reform programmes and measures for 10 or 15 years more to reap the benefits. The Senior Vice President of the World Bank Group, Mr Indermit Gill had last Tuesday in Abuja argued that the Federal Government was on the right track with its economic reform and should forge ahead with it for the next 10 or 15 years to be able to transform the economy.
The World Bank had also claimed that the economic reforms of the federal government over the last year were yielding positive results, a development that has seen Nigeria’s fiscal deficit shrink to 4.4 percent in the first half of 2024 (H1’24) from 6.2 per cent in the same period last year (H1’23).
The key reform programmes and measures include the removal of petrol subsidies, devaluation of the local currency by free-float measures, raising of tariffs on utilities especially electricity, and raising of taxes, among others.
The World Bank recommendations came against the backdrop of excruciating pains of rising cost of living and declining standard of living especially among the low-income groups in Nigeria.
Speaking with Saturday Vanguard yesterday, however, Nigerian economic experts lampooned the World Bank and the Nigerian public policy executives whom they accused of swallowing the World Bank pills without consideration for the efficacy of the reform to Nigeria’s peculiar economic ailments.
The bulk of negative impacts are borne by the vulnerable — Amolegbe
Reacting to the World Bank’s verdict on President Tinubu’s reforms, Olatunde Amolegbe, former President, Chartered Institute of Stockbrokers, CIS, stated: “Managing the economy of a country such as Nigeria cannot be all about a balanced budget and nice sounding financials, it must have a human face. While the reforms we’ve seen might be considered necessary, it’s clear that the bulk of the negative impacts are being borne by the most vulnerable within the society.
If the reforms are not paced and efforts made to ameliorate the negative impact they might very well not achieve their intended purpose due to lack of public consensus.”
Reform policies have increased burden on citizens – Egbomeade
Reacting as well on the economic reform, Clifford Egbomeade, Public policy analyst said: “The advice from the World Bank Vice President, Indermit Gill, that Nigeria must sustain the Tinubu administration’s reforms for the next 10 to 15 years has sparked significant debate. On one hand, the reforms—including fuel subsidy removal and foreign exchange rate unification—are aimed at promoting long-term economic stability and growth. However, the hardship they have imposed on ordinary Nigerians, such as increased living costs and inflation, raises questions about their immediate feasibility and social impact. While Gill argues that reforms are necessary for Nigeria to break free from the legacy of oil dependency and elite capture, it is crucial to note that these same policies have exacerbated the burden on the most vulnerable.
The World Bank has acknowledged that Nigeria’s oil wealth has historically benefited a small elite, while the ordinary population suffers from structural inefficiencies in the economy. The removal of fuel subsidies, for example, has led to skyrocketing transportation and food costs, further straining already struggling households”.
Source: Vanguard
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