World Bank Chief Economist Indermit Gill said in the opening plenary of the just-concluded Nigeria Economic Summit that economic reforms in Africa’s most populous country will take 10 to 15 years to produce lasting results. He said that it was necessary to continue this, and received a natural response. Nigerians who are ridiculing this respected economist’s comments are aware that he does not address the entire issue and instead addresses the serious and sometimes dehumanizing reforms that the government’s ongoing reforms are inflicting on them. I believe that he chose to remind me of the pain.
“Reforms are inevitably painful, but we know how to alleviate this pain, especially for the very poor. There are also reform measures that governments have failed to undertake that are of little or no pain to the people. “There is potential for huge profits without having to do anything.” Dear Nigerians. ”
“But this is just the beginning,” Gill said. “Nigeria will need to stay on this path for at least another 10 to 15 years to transform this economy, which will be the engine of growth in sub-Saharan Africa and will transform sub-Saharan Africa. You will need to.”
Gill became a great salesman in Nigeria. In a recent editorial in the Financial Times, World Bank economists said: “The Nigerian government deserves the support of the world in this endeavor. Failure in Nigeria will not only undermine the future prospects of yet another generation of young Nigerians, but also undermine the cause of reform across Africa.” The country’s elites believe that the international community must build a political consensus to support these reforms, as the long-term interests of the country are in a broadly prosperous and stable society. We should do everything we can to help them succeed.”
These are all good things. But the problem with Mr. Gill’s statement was that he attacked why Nigerians were suddenly dissatisfied with the government’s reforms that they accepted last May, and that the government had not implemented limited reform measures. This is something that I did not raise my voice about. Reform doesn’t just mean pain.
Mr. Gill’s statement assumes that the scope and completeness of the reforms underway in Nigeria are close to what needs to be done and what can be done. This is why many Nigerians took his comments as an endorsement of the unnecessary suffering the reforms have caused them. Reform inevitably involves pain, but we know how to alleviate this pain, especially for the very poor. There are also reform measures that this government has failed to undertake that could bring huge benefits with little or no pain to Nigerians. . The public believes that the burden of the reforms required is unjust, and this has led those suffering to question the seriousness of the government’s reforms.
Also read: T-Pain or T-Hope: World Bank praises President Tinubu’s reforms
The truth is that the abolition of petrol subsidies and the abolition of the corrupt multiple exchange rate system are important reform measures that have long been in place, and most Nigerians welcomed the announcement of ‘elimination of subsidies’. It is an honor. President Bola Tinubu said this at the inauguration ceremony on May 29, 2023. That the same Nigerians are complaining now, a year later, is indicative of a lack of communication and failure of leaders in the legislative and executive branches of government to demonstrate that they can lead with policies that: It shows that it is not. example. Nigerians are linking their suffering to the fact that government spending and corruption remain at unacceptably high levels, even as citizens are being urged to tighten their belts.
Although the World Bank's chief economist has called for more patience from Nigerians, there is little to suggest that Nigeria is making the most of the fruits of its current reforms. Economists including Tirewa Adebajo are calling for a reset and insisting on significant changes to the reform template.
“We disagree with the World Bank’s position and timeline,” Adebajo said in his latest advisory. “This announcement is not backed by any reliable research and is not substantiated by the latest Nigerian Economic Report dataset. However, the control levers of economic growth and development rest firmly in the hands of the Nigerian government. It’s time for a reality check. This reform program, while commendable, was not implemented properly. This led to a free depreciation of the currency, resulting in a 200% devaluation of the currency. , inflation and the money supply soared. As a result of the reforms and failure of social intervention programs, economic reform becomes a quagmire. Therefore, at least one more budget cycle is required to achieve economic stability. , it’s time for the government to press the reset button.”
The truth is, there are many areas where the government can do better. One of the key areas that requires change is the national oil company NNPC Limited. Taiwo Oyedele, who heads the President’s Committee on Fiscal Policy and Tax Reform, believes that in another country, the same NNPC would be paying $18 billion to $20 billion a year in taxes to the Treasury. Making the NNPC more efficient will not bring more suffering to Nigerians, but so far this government has failed to do what is needed to bring about change in the NNPC. On Tuesday, the Minister of Finance and Coordinating Economic Affairs, Wale Edun, lamented:
Nigeria’s alarming failure to boost oil production could soon alleviate the severe currency crisis it faces. Edun’s concerns were shared by Adebajo, who said: “Nigeria must permanently resolve its vulnerability to oil price fluctuations.” NNPC’s ownership has been a huge success.Norwegian funds brought in US$213 billion in profits last year.” It is to be restricted to reflect the ownership of the Nigerian Liquefied Natural Gas Company.
Africa’s most populous country also needs to supply gas to its stranded power plants, which could be achieved by privatizing the Nigeria Gas Company, but only through major changes to the structure of the NNPC. Dew. And we won’t cause people more pain by doing this. Nigeria is estimated to have over N100 trillion in unused assets, which must be sold or handed over to private operators to be put to work for the people. But so far the government has shown no desire to do this. A few months ago, Nigerians were subjected to some commotion over how the government was building a proper asset register. However, there has been no movement in this regard. Nigeria has a good example of how state assets have been transformed through private visits. The privatization of the Eleme petrochemical plant is one example. This government also needs to launch programs that can positively impact the country’s food situation, first by addressing the growing insecurity in most agricultural regions. This can be achieved by approaching insecurity from a regional perspective by grouping each state into regions, focusing on one region at a time. The enormous amount of waste produced from farm to market must also be disposed of strategically and within a short period of time. Most government interventions in agriculture are slow and lack rigor.
Although the exemplary courage shown by the government in eliminating fuel subsidies is frequently touted by government officials, it is inexplicable that the government has so far failed in some of the above attempts at change. do not have.
