The World Bank Vice President and Chief Economist, Mr. Indermit Gill, has called on the Nigerian government to stay the course on ongoing economic reforms despite the hardships they are causing for citizens, especially the most vulnerable.
Speaking at the opening session of the Nigerian Economic Summit in Abuja, Gill commended the Central Bank of Nigeria (CBN) for unifying the exchange rates, saying it provides a great opportunity for the country. However, he acknowledged that the fiscal and monetary reforms are hurting ordinary Nigerians who are struggling with high food and transport prices.
“The government must do everything in its power to protect the most vulnerable citizens against hardships because their lives and the lives of 110 million children depend on it,” Gill said. “You must stay the course of the reforms because Nigeria’s future and the future of these 110 million children depend on it.”
Gill outlined three key priorities for Nigerian policymakers in the coming years:
1. Prioritize non-oil exports and build foreign reserves as a buffer against oil volatility
2. Install cost-effective safety nets to protect the most vulnerable, financed by savings from fuel subsidies and exchange rate savings
3. Attract investments, especially in the non-oil sector, to generate jobs for the 12 million Nigerians entering the workforce in the next decade
The World Bank economist admitted that the reforms, while necessary, are very difficult. However, he emphasized that the rewards would be massive if sustained, transforming not just Nigeria’s economy but that of the entire Sub-Saharan Africa.
Gill pointed to the experience of countries like Norway, Poland, and Korea over the past 40 years as examples of the long-term benefits of staying the course on tough economic reforms. He also noted that Nigeria’s reforms between 2003-2007 were exactly what the country needed but were unfortunately not sustained.