Speaking at the Nigerian Economic Summit (NES30) in Abuja, World Bank Vice President and Chief Economist Indermit Gill emphasised that maintaining these reforms is crucial for long-term growth, especially for a resilient economy in Sub-Saharan Africa.
Gill highlighted the Central Bank of Nigeria (CBN) ‘s unification of exchange rates as a commendable move, stating, “The exchange rate Nigeria now has is the most effective in 20 years.”
He noted that this decision could strengthen Nigeria’s foreign reserves and provide a buffer against oil price fluctuations, adding, “Governor Cardoso is implementing necessary steps, and it’s important he receives continued support.”
Despite acknowledging the difficulties of these reforms, particularly for Nigeria’s most vulnerable citizens, Gill stressed that their successful implementation could dramatically reshape the economy.
“It’s very difficult to do these things, but the rewards are massive. It’s a lesson from the last 40 years from countries like Norway, Poland, and Korea,” he said, advocating for policy stability.
Gill further noted that Nigeria’s past reforms from 2003 to 2007 were similarly vital but lacked continuity.
He stressed the importance of sustaining current efforts, explaining, “If these reforms continue, they will not only transform Nigeria’s economy but also significantly impact Sub-Saharan Africa.”
However, Gill acknowledged the strain on everyday Nigerians, especially with rising food and transport costs.
To alleviate these challenges, he advised the government to prioritise cost-effective safety nets.
“Every vulnerable household needs government support to survive current difficulties,” he said, suggesting that savings from fuel subsidies and exchange rate adjustments could finance these initiatives.
He called for protections that ensure the well-being of over 110 million Nigerian children, who he believes are directly affected by the economic climate.
Gill concluded by calling for job creation, especially as Nigeria anticipates hiring over 12 million new workers in the coming decade.
He encouraged a focus on non-oil exports to foster investment in diverse sectors and support Nigeria’s long-term economic vision.
