The recent speech by World Bank Vice President Indermit Gill at the Nigerian Economic Summit (NES30) in Abuja highlights the critical importance of ongoing economic reforms to ensure long-term growth, particularly for a resilient economy in Sub-Saharan Africa.
Gill highlighted the remarkable work of the Central Bank of Nigeria (CBN) in unifying exchange rates, saying that “Nigeria’s current exchange rate is the most effective in 20 years.”
He noted that the move could strengthen Nigeria’s foreign exchange reserves and provide a buffer against oil price fluctuations, adding, “Governor Cardoso is implementing necessary measures and it is important that he has continued support.”
Despite acknowledging the challenges of these reforms, particularly for Nigeria’s most vulnerable citizens, Gill insisted that their successful implementation could dramatically transform the economy.
“It is very difficult to achieve these actions, but the rewards are enormous. This is a lesson from the last 40 years from countries like Norway, Poland and Korea,” he said, arguing for policy stability.
Gill also noted that Nigeria’s past reforms from 2003 to 2007 were equally crucial 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 will also have a significant impact on sub-Saharan Africa.”
However, Gill acknowledged the challenges faced by Nigerians on a daily basis, especially with rising food and transportation prices.
To mitigate these challenges, he advised the government to prioritize the establishment of cost-effective safety nets.
“Every vulnerable household needs government support to overcome the current challenges,” he said, suggesting that savings from fuel subsidies and exchange rate adjustments could fund these initiatives.
He called for protective measures to ensure the well-being of Nigeria’s more than 110 million children who are directly impacted by the economic climate.
Gill concluded by calling for job creation, especially as Nigeria plans to hire more than 12 million new workers in the next decade.
In short, Gill’s speech highlights the transformative potential of Nigeria’s ongoing reforms, underscoring the need for sustained action to ensure a strong and prosperous economic future for the country and the entire sub-Saharan African region.