Bauchi State governor Bala Mohammed yesterday confronted the World Bank over the latter’s claims that a reversal of the federal government’s current economic reforms would spell doom for the country, insisting that the reforms are not working.
World Bank Country Director Dr Ndiame Diop advised Nigerians not to oppose the current reforms at the launch of the Nigerian Development Update (NDU) in Abuja.
Diop also said while the reforms might be challenging, they are crucial for the nation’s long-term stability.
Reforms not working — Gov Mohammed
However, Governor Bala Mohammed expressed a contrary view of the ongoing reforms, asking the Federal Government to review them since they were not working.
Asking the Federal Government not to be dogmatic about the issue, the governor disclosed that people are hungry and that people of his status face the threat of being lynched.
He said: “When the reforms started, the sub-nationals supported the President. The macro-economic policies causing inflation should be looked into. There is hunger. People are suffering. We should not be dogmatic. Nigerians are not enjoying the reforms.
“The Federal Government should come up with economic policies. The money we are receiving is not enough. What are you doing to reduce hunger? We should help the people to cope.
“The purchasing power has dwindled. If these policies are not working, review them. Let us not go into blackmail.
“What of power? The tariffs are too high. The people are not able to pay. We are on the brink of being lynched. These policies are not working. Let us review them.”
Reversing reforms’ll spell doom for Nigeria, World Bank warns
Warning that reversing the current reforms will spell doom for the country, Diop said the World Bank is totally committed to supporting government’s efforts towards a successful implementation of the reforms, both monetary and fiscal.
He said the NDU is more than just a report, according to him, it is a call for reflection.
He said the nation’s economy is already recording some positives, such as improvement in government revenue, which has pushed the debt/revenue ratio from 100 per cent in 2022 to a current 60 per cent.
Diop added that the nation’s external position had become a lot better with rising external reserves, noting that though the reforms posed some difficulties for Nigerians, reversing them would spell doom for the country.
“We know that many Nigerians are struggling with high inflation and rising costs of living. So, progress is real but so are the struggles of many citizens, which the team actually will elaborate on later.
‘’The report’s message is clear: We need to stick to the plan and keep moving forward. Turning back or opposing the reforms would only make things worse.
“Staying the course is essential for securing a better future for all Nigerians. But the effort must be accompanied by reforms enabling the private sector to create more and better jobs, with targeted support to youth and women,’’ he said.
Diop charged the government to plough the gains of the reforms into social safety nets that can immediately ameliorate the impact on ordinary Nigerians who currently face tough living conditions.
Why we must sustain reforms— Edun
In his remarks, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said: “Any effort that you do not sustain will be a waste. The governor of CBN and the Minister of Budget and National Planning and I have looked at how to stay the course.
Our discussion was how can we reduce inflation and at the same time see that investments come into the real sectors — the industries and to see that they operate because that is where the jobs are.”
Asked to be specific as to whether or not fuel subsidy had been totally removed, the minister said: “It is market pricing. We sat down with the unions yesterday and explained why we should not allow this opportunity to slip.
“Each day, with removal of subsidies, the government has money to spend on education, health and on other expenditures.”
The governor of the Central Bank of Nigeria, CBN, Mr. Olayemi Cardoso, said at the launch of the document that the apex bank does not determine foreign exchange rates.
Speaking as a panellist at the launch, he said the fundamentals determine the foreign exchange rate, insisting that he will stick to orthodox central banking.
According to him, the positive results of this appropriate policy direction are already evident.
He said: “The CBN does not determine the exchange rate; it is determined by the fundamentals. CBN will make sure we stick to that.
“As we strengthen our collaboration with the fiscal authorities, we will see that the exchange rate will be more stable.
“We will do everything possible to get more exchange rate into our economy. When we started, FX inflows were about $200 million but by sheer determination, we now record $600 million.
“We should encourage exports. If we look at the competitiveness of our goods for export, as a result of our moderation in FX, it helps us make choices that we should have made earlier.
‘’The moderation of the FX rate should also help to discourage the importation of goods that we don’t need to import.
“Before, most of the people who would have come to invest here were standing by the side. Now it is amazing to see the number of those who have come out and are ready to put their flags here.”
My fear about reforms — Gill
In his remarks, World Bank Vice President and Chief Economist, Dr. Indermit Gill, reiterated his earlier position that it could take Nigeria 10 to 15 years for the economy to get out of the woods but noted that with determination and consistency, the economy could return to a very positive position in 11 years.
He said he would leave Nigeria with both hope and fear- hope that the government would meticulously implement the reforms, given the urgency which they required and fear that the reforms could be halted due to fierce opposition
Also contributing as a panellist, Ms Amal Hassan, Founder of Outsourcing Global, said Nigeria has great opportunities in the global economy by providing her youth population with requisite skills, helping them to take up jobs across the world.
