The World Bank Group has urged the Federal Government of Nigeria use the nation’s oil wealth for the welfare of the citizens. This was contained in a statement by the Chief Economist and Vice President of the World Bank, Indermit Gill, yesterday at the 30th Nigerian Economic Summit in Abuja.
Gill stated that the economic suffering is widespread in Nigeria. With children and young people bearing the brunt of inflation, poor education, healthcare, and unemployment.
According to him, Nigeria’s reforms from 2003 to 2007 were exactly what was needed to turn the economy around. He, however, regretted that they were not sustained.
“During those four years, Nigeria implemented fiscal and exchange rate reforms. It introduced unprecedented transparency into the recording and allocation of oil revenues. It renegotiated its Paris Club debt, which had created this debt overhang that was choking the economy. And the payoff was immense and immediate,” he said.
Gill, however, lamented that the Federal Government’s fiscal, monetary, and exchange rate reforms are hurting everyone. “Especially ordinary Nigerians, who are struggling with high food and transportation prices.”
“So, oil wealth should be used for the welfare of all Nigerians.”
“This is because it has been used to benefit just the elite for too long. The elite are also being hurt by these reforms that started last year. But they have done very well in the past, and they have built substantial buffers. The ordinary Nigerians are being hurt even more.
He noted that, “They were affected much more by the policies of the past. They don’t have any buffers. So, their welfare should be uppermost in our minds today.”
“The Government must do everything in its power to protect the most vulnerable citizens against hardships. Because their lives and the lives of Nigeria’s 110 million children depend on it. And it must stay the course of reform because Nigeria’s long-term future and the future of the 110 million children depend on it.”
The World Bank Chief, therefore, called on Nigerian policymakers to prioritize non-oil growth. He urged them to ensure a competitive exchange rate, which Nigeria now has. Gill added that now is the best opportunity for the private sector to protect the poor and maintain competitiveness.
In his reaction, President Bola Ahmed Tinubu stated his administration empathizes with Nigerians on the present economic situation.
Speaking through the Vice President Kashim Shettima, said the administration has only one option besides introducing tough economic reforms.
Tinubu stated that Nigeria’s economic challenges are insignificant and manageable as long as the right policies are implemented.
The summit’s theme ‘Collaborative Action for Growth, Competitiveness, and Stability’.
Speaking on the theme of the summit, Tinubu said, “Like many other nations, Nigeria has experienced significant economic problems over the past few years. The challenges have been global as well as domestic.”
source: Leadership
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