..says there is more funding for Nigerian projects this year
The World Bank has urged the federal government not to reverse the ongoing economic reforms, warning that such a move could have negative implications for Nigeria.
Recall that the President Bola Tinubu-led administration implemented significant policies, including the removal of fuel subsidy and the abolishment of multiple foreign exchange systems, in its first days in office.
Speaking at the launch of the Nigeria Development Update (NDU) report in Abuja on Thursday, the World Bank Country Director for Nigeria, Dr Ndiame Diop, acknowledged that while these reforms may cause temporary hardship, they are essential for the nation’s long-term stability.
Diop cautioned that “reversing these reforms would be detrimental and would spell doom for Nigeria.”
In support of the reforms, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, emphasised the federal government’s commitment to maintaining its course.
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, tackle inflation, and ensure we move in the right direction.”
Edun elaborated that the government aims to reduce inflation while attracting investments in critical sectors like industry, where job creation is anticipated.
He noted that Nigeria expects significant investments in the coming days.
Despite the government’s consistent defence of these policies, many Nigerians have expressed concerns about their impact on everyday life.
Salient Times reports that petrol, which was sold was around N198 when President Bola Tinubu’s administration took over, has increased four times following the removal of the subsidy, and now exceeds N1,000.
Similarly, the naira, which traded below N600 to a dollar, now exchanges above N1,700 in the parallel market.
We have more funding for Nigerian projects this year,
Meanwhile, the World Bank says there is more financial support for Nigeria this year.
Ndiame Diop, World Bank country director for Nigeria, spoke to journalists after the launch of the country’s development update report in Abuja.
On September 24, the Washington-based organisation had approved three new financing totalling $1.57 billion to support Nigeria.
Diop said while Nigeria is qualified for more technical and financial support, what matters is the implementation.
“Nigeria is a very important partner for the World Bank,” Diop said.
“And we’ve been providing technical support but also financing. Our financing comes with technical support, implementation support and really making sure that things go according to plan.
“In addition to the concessionality in the financing, because much of what we provide to Nigeria in financing is concessional, the other reason many countries are really interested in working with us is that it’s not just financing. It’s also about implementation and making sure that you get results from that financing.
“And making sure that the financing enables something in the country, enables the institution, enables people so that we can achieve sustainability goals.
“Yes, we will keep giving loans. We do actually have funding in our pipeline for this fiscal year for several projects financed by the World Bank.
“These are government projects implemented mostly by the states, but also in the federal government, which span across human capital, such as health, primary health care, but also education, rural roads, irrigation and dam safety.
“All of those projects are being processed right now for Nigeria for this year.”
Diop said the lender is addressing some of the issues discussed at the event, “such as support to local SMEs, farmers, women in locality to help them really cope with the rising cost”.
‘No Intentions To Keep Nigeria Down’
On his part, Alex Sienaert, lead economist for the World Bank in Nigeria, says the institution has no intention to keep the country or its people down.
“I’m in this position of having been the lead economist at the World Bank here in Nigeria on economic policy issues for two years now, and I just want to tell you that I’ve not seen any conspiracy within the World Bank or otherwise to keep Nigeria down,” Sienaert said.
“The World Bank is here to help, I’m here to help. Our whole team is here to help. We’re here to provide advice and low cost financing in support of Nigeria getting its own house in order for its own sake.”
The economist also said President Bola Tinubu’s signature reforms, though painful, could help Nigeria to overcome its challenges.
“If that chance crystallises, it will transform Nigeria and Africa,” he said.
“We got where we are now that major policy reforms are starting to yield positive results, as mentioned, if we take a look at GDP, so the aggregate output of the economy has actually been pretty resilient.”
Sienert said it is important for Nigeria to stay the course in its reform direction
