While the Bank have some positive comments on the reform programmes, it also believes that there are much more to be done to pull Nigeria out of the poverty trap.
This is even as the Governor of Bauchi State, Bala Mohammed bluntly said the reforms are not working but has instead inflicted pains on Nigerians.
Presenting the report, World Bank Lead Economist for Poverty, Dr. said the reform measures introduced by the government are needed but they are not enough to put Nigeria on a sustainable trajectory out of poverty. He said that what is also needed is a job growth agenda that will take advantage of Nigeria’s huge youth population.
According to him, “In 2034, which is just less than 10 years, there would be 12 million more Nigerians entering the labour market, more than in 2024. They will need jobs, they will need opportunity otherwise they won’t be able to escape poverty.”
He said it is fundamentally important for Nigeria to benefit from its demographic dividend otherwise the demographic dividend will become a demographic burden.
He said Inflation is high and it is going to last a little bit longer. “It has eroded the purchasing Power of the citizens. It is not surprising that poverty increased over the past years as a result of Covid and other natural disasters.
“The reforms have also increased the pains,” he said. “Though the government has increased the minimum wage, only 4.1 per cent of the citizens are benefiting from the increase.”
Commenting on the report, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun said the government has taken a bold step and has positioned the country on the path of economic growth.
According to him, “Six months ago, we were talking about turning the corner, now that corner has been turned. We are now talking about staying the course.”
He said the government is aware that it is not going to be easy and that a lot of efforts are needed. He promised that what the government is doing is to keep the economy stable.
He also noted that the real growth will come from agriculture and the government is putting more energy in that direction.
On his part, the Governor of the Central Bank of Nigeria (CBN), Mr. Yemi Cardoso said the forex rate unification should actually encourage exports and discourage excessive imports.
He insisted that the apex bank will stick to the orthodox monetary policies it adopted last year and stay away from quasi-fiscal interventions.
“However, we are not going to abandon ongoing interventions, we will review them.”
He said that if the bank did not take the preemptive step it took to raise the interest rates, the situation would have been worse with the hike in fuel prices.
He promised that the bank will move towards evidence based Central banking and be very transparent in all its doings.
On his part the Governor of Bauchi State, Bala Mohammed said the World Bank was diplomatic with its report because it does not reflect the reality on ground.
He said Nigerians are suffering, adding that the macroeconomic policies that have unleashed pains on the people should be looked into.
According to him, “Those of us at the states did not make the policies, the money that we are receiving is not enough for us to provide for our people that are suffering the consequences of the reforms.
“Nigerians are not enjoying this regime, come up with policies that will reduce the pains of the people. The purchasing power has gone. This report is too academic. The reforms are not working.”
He pleaded with the Minister of Finance and the CBN governor to do something about the suffering of the people because he has the confidence that they have the capacity to do so.
Others who Spoke at the event include the Vice President World Bank Group, Indermit Gill who said Nigeriais too good to depend on just one commodity.
He acknowledged the significant achievements in getting the Monetary policy right, but noted that, that one leg alone cannot move the car.
“I would liken Nigeria with a car with all the tyres deflated, now that you have been able to inflate one tyre, you still cannot move the car until the other three tyres are inflated,” he said.
He called for collaboration between all the authorities to ensure a holistic growth and development.