The Bola Tinubu administration has been warned not to risk sending Nigeria down the slope by reversing the ongoing economic reforms despite the hardship biting the citizens.
The World Bank gave the warning through its World Bank Country Director for Nigeria, Dr. Ndiame Diop in Abuja on Thursday.
Diop who spoke at the launch of the Nigeria Development Update (NDU) report contended that while the reforms might bring hardship, they were unavoidable for the nation’s long-term stability.
He stressed that not following the economic reforms portended negative implications for the country.
The Tinubu administration introduced reforms, notably the removal of fuel subsidy and the abolishing of multiple foreign exchange systems.
The pump price of fuel which was less than N200 before the administration removed the subsidy, now sells above N1,000, while naira which traded below N600 for one dollar is now above N1,700 in the parallel market.
Many Nigerians have been complaining about the effects of the reforms on the masses.
“Reversing these reforms would be detrimental and would spell doom for Nigeria,” Diop warned.
In the same vein, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, stressed the Federal Government’s commitment to sustain the economic reforms.
“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.”
The minister further explained that the government’s focus was on reducing inflation while ensuring investments flowed into critical sectors such as industry, where jobs could be created.
“We are prioritizing market pricing and sat down with labour unions to explain why we cannot afford to let this opportunity slip”.
Speaking on the removal of subsidies, Edun noted, “Every day without subsidies means more funds available for education, healthcare, and other essential expenditures.”
Central Bank Governor, Mr. Olayemi Cardoso also emphasised the importance of promoting exports in light of the exchange rate adjustments.
“The moderation in the fx rate should make our goods more competitive for export and discourage the importation of unnecessary goods,” Cardoso said.
