The World Bank has urged Nigeria to ease trade restrictions that block market development and diversify the economy by investing more in agriculture and other non-oil sectors. The Bank also sought improvement in basic infrastructure provision especially electricity and clean water to take more Nigerians out of poverty.
President of the World Bank Group, David Malpass, said these at the ongoing IMF/World Bank Group Springs meeting in Washington.
He noted that these are the surest ways to achieve shared prosperity and sustainable growth in keeping with the lender’s economic projection of 2.8% for Nigeria in 2023.
Malpass said: “Nigeria has trade protection that blocks market development. They have a dual exchange rate that is very expensive for the people of Nigeria to maintain that dual exchange rate system.
“They have high inflation and not enough diversification of the economy to really make sufficient progress.”
In terms of growth, he said: “For Nigeria, the growth was 3.3 per cent in 2022 and 2.8 per cent in 2023, within our forecast, and our high priority for the World Bank is shared prosperity in a sustainable way.
“And so, as we think about Nigeria, there are many changes that are needed in order to allow that process to proceed. Nigeria has a big chunk of its GDP is oil and it means that a lot of people in Nigeria are facing poverty and that needs to be redirected.
“And they also face insecurity across the northern and western regions and it is very challenging. And so, the World Bank is working hard within Nigeria, but also working to have an economic system that can be more productive.”
Malpass also advised Nigeria and other Sub-Saharan African countries to focus on policies that would enhance inclusive growth similar to India, which has recorded improved electricity supply, investments in agriculture and investments in infrastructure.
He reiterated that the World Bank’s major concern is: “First, restoring price stability and safeguarding financial stability as prerequisites for a return to robust growth.”
He added that “So long as financial pressures remain limited, we expect central banks to stay the course in the fight against inflation, holding a tight stance to prevent re-aggravated inflation expectations.
“Further efforts to reduce budget deficits are critical to support the fight against inflation and reduce debt. But this is not an easy task. We still have to care about the most vulnerable segments of our societies.
This is because, “fighting inflation and safeguarding financial stability have become more complex with recent banking sector pressures,” he noted.
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
