The World Bank has cautioned Nigerians that reversing the ongoing economic reforms could have severe consequences for the country.
Dr. Ndiame Diop, World Bank Country Director for Nigeria, emphasized the importance of supporting these reforms, despite their potential challenges.
According to Diop, the reforms are crucial for Nigeria’s long-term stability.
The World Bank’s stance was reiterated at the Nigeria Development Update report launch in Abuja, according to Daily Post.
Nigeria’s Minister of Finance, Wale Edun, echoed the World Bank’s sentiments, stressing the importance of staying committed to the reforms.
Edun explained that the government’s focus is on reducing inflation while attracting investments to critical sectors, such as industry, where jobs can be created.
He stated, “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.”
“We are prioritizing market pricing and sat down with labor unions to explain why we cannot afford to let this opportunity slip.”
Central Bank Governor Olayemi Cardoso also highlighted the significance of promoting exports in light of exchange rate adjustments.
The unified exchange rate and market-determined rate are expected to make Nigerian goods more competitive for export.
The Nigerian government has implemented various reforms, including unifying official exchange rates, phasing out gasoline subsidies, and tightening monetary policy. These changes aim to stabilize the economy and promote growth.
The World Bank has approved a $2.25 billion financing package to support Nigeria’s reform efforts, focusing on economic stabilization, revenue mobilization, and support for the poor and vulnerable.
“The moderation in the FX rate should make our goods more competitive for export and discourage the importation of unnecessary goods,” Cardoso said.
