*World Bank Sounds Alarm: Reversing Fuel Subsidy Removal Spells Doom for Nigeria*
By Ella Michaels
The World Bank has issued a stern warning to President Bola Tinubu's administration, urging it to stay the course on economic reforms, despite widespread criticism. The call comes as Nigerians grapple with soaring fuel prices and a plummeting naira ¹.
During the launch of the Nigeria Development Update report in Abuja, World Bank Country Director Dr. Ndiame Diop emphasized that reversing the reforms would have devastating consequences. "These reforms may impose immediate hardships, but they are crucial for Nigeria's long-term economic stability," Diop cautioned.
*A Tough Pill to Swallow*
Since the fuel subsidy removal, petrol prices have skyrocketed from N198 to over N1,200 per liter. The naira's value has also taken a hit, trading above N1,700 against the dollar in the parallel market, compared to below N600 prior to the reforms.
*Government Stands Firm*
Finance Minister Wale Edun reaffirmed the government's commitment to maintaining its reform agenda. "Any effort that is not sustained will be a waste," Edun stressed. The government aims to reduce inflation and attract investments in critical sectors, creating jobs and positioning Nigeria for significant economic growth.
*A Long-Term Vision*
World Bank's Senior Vice President Indermit Gill echoed this sentiment at the 30th Nigerian Economic Summit, urging the Tinubu administration to uphold ongoing reforms. "Nigeria needs 10 to 15 years to become a leading economic power in sub-Saharan Africa and globally," Gill stated.
*Criticism Mounts*
However, ActionAid Nigeria's Country Director Andrew Mamedu slammed the World Bank's stance, calling it insulting to millions of Nigerians facing unprecedented economic hardship.
