Toba Owojaiye reporting
Abuja, Nigeria
Nigeria’s economic reforms, as emphasized by World Bank Senior Vice President Indermit Gill, are critical for the country’s future, but they will require sustained effort over the next 10 to 15 years to fully transform the economy.
Speaking to Truth Live News and other reputable media houses at the 30th Nigerian Economic Summit in Abuja, Gill noted that the country’s recent policies, such as the removal of fuel subsidies and the unification of the exchange rate, have already resulted in significant inflationary pressures, with the current inflation rate standing at 32.15%. These reforms, while necessary to rectify decades of economic mismanagement, have driven up transportation and production costs, disproportionately affecting everyday Nigerians.
The removal of fuel subsidies alone has cost the country over N10 trillion, and the previous fragmented exchange rate system primarily benefitted the elite.
Indermit Gill, Chief Economist of the World Bank Group and Senior Vice President for Development Economics. emphasized that though these steps are painful, they are essential for long-term stability. “Nigeria needs to maintain these reforms for the next decade to position itself as a global economic player,” he remarked. The World Bank has advised that the government must build buffers, like foreign reserves, to shield the economy from oil price volatility while also expanding the non-oil sector for sustainable growth.
Gill’s perspective aligns with Nigeria’s vision to become a key driver of growth not only in Sub-Saharan Africa but also in the global economy. Drawing from lessons learned in nations like South Korea, Norway, and Poland, the importance of staying the course cannot be overstated. However, the World Bank also cautions that while these reforms have opened the door to future prosperity, the government must address the immediate impact on vulnerable citizens by introducing safety nets to protect them from worsening poverty.
While the goals of these economic reforms are ambitious and have the potential to uplift Nigeria’s economic status, they demand long-term commitment and immediate attention to social welfare to truly unlock their potential as the president was have recently dubbed ” T – Pain” as a response to the excruciating hardship suffered by a majority of its masses.