The World Bank Vice President and Chief Economist, Mr. Indermit Gill, expressed support for Central Bank Governor Mr. Olayemi Cardoso’s foreign exchange unification policy, stating that he is on the right track and should be encouraged.
Mr. Gill made these remarks during the opening session of the #NES30# in Abuja on Monday.
He acknowledged that the current administration’s reforms have caused hardship for many Nigerians, particularly the vulnerable poor, but emphasized that these measures are essential for the nation’s economic recovery.
“To return the nation’s economy to a path of sustainable growth, Nigeria must maintain these reforms,” he stated, adding that their successful implementation could transform the Nigerian economy and positively impact the entire Sub-Saharan Africa region.
“I don’t know if you agree with me or not, but if the reforms are sustained, they will significantly benefit the economy of Sub-Saharan Africa. Implementing such changes is challenging, but the rewards are substantial, as demonstrated by lessons from the last 40 years and by countries like Norway, Poland, and Korea.”
He continued, “While Nigeria’s reforms from 2003 to 2007 were necessary, they were not sustained. Today’s fiscal and monetary reforms are affecting everyone, especially ordinary Nigerians grappling with rising food and transportation costs.”
Mr. Gill stressed the importance of government intervention, saying, “The government must do everything possible to protect the most vulnerable citizens from these hardships, as their lives and those of 110 million children depend on it.”
He urged policymakers to stay committed to the reforms, highlighting that the future of Nigeria and its children hinges on this course of action.
“In the coming years, Nigeria’s policymakers face three key options. First, prioritize non-oil exports. The current exchange rate is the most effective in 20 years, presenting a significant opportunity. Building foreign reserves as a buffer against oil volatility is crucial, and I believe Governor Cardoso is already pursuing these objectives and deserves encouragement.”
He added, “Second, every vulnerable household needs government support to navigate the current difficulties. Establishing cost-effective safety nets to protect the most vulnerable should be financed by savings from fuel subsidies and the new exchange rate framework.”
Finally, Mr. Gill underscored the urgent need for job creation, stating, “In the next ten years, more than 12 million Nigerians will enter the workforce. It’s essential to generate jobs for them and attract investments, especially in the non-oil sector.”
