Economic Reforms Needed for Sustainable Development
Nigerian economists and financial experts are questioning the World Bank’s recommendations that Nigeria should continue with its ongoing economic reforms for another 10 to 15 years to reap the benefits. The World Bank Group’s Senior Vice President, Mr. Indermit Gill, recently argued in Abuja that the federal government is on track with its economic reforms and should continue them for the next few decades to transform the economy.
While the World Bank says the federal government’s economic reforms are paying off, with Nigeria’s budget deficit reduced to 4.4 percent in the first half of 2024 from 6.2 percent in the same period last year, Nigerian experts disagree.
According to Olatunde Amolegbe, former president of the Institute of Stockbrokers, managing the economy of a country like Nigeria cannot be limited to a balanced budget and attractive financial figures. The ongoing reforms, while necessary, appear to be negatively impacting the most vulnerable sections of society. It is crucial to strike a balance to ensure that these reforms do not do more harm than good.
Public policy analyst Clifford Egbomeade points out that while the reforms are aimed at promoting long-term economic stability, the challenges faced by ordinary Nigerians, such as rising living costs, raise questions about their immediate feasibility and social impacts. The reforms do not effectively address the need to support the most vulnerable, who are already burdened by heavy daily burdens.
Financial analyst David Adonri acknowledges that economic reforms may be painful in the short term but believes that the economy will gradually adjust. However, it is essential that these reforms are accompanied by strong social safety nets to protect the most deprived.
In conclusion, it is imperative that economic reforms are carried out in an inclusive and equitable manner, with emphasis on social protection, job creation and targeted intervention measures to mitigate negative impacts on the most vulnerable populations. Nigeria cannot afford to sacrifice the well-being of its citizens for the sake of long-term economic progress. A more just and balanced approach is needed to ensure sustainable and inclusive development for all Nigerians.