Abuja, Oct. 14, 2024 – Mr Indermit Gill, a World Bank Vice President and Chief Economist, has commended the Central Bank of Nigeria (CBN) for its policy measures introduced since the inception of this administration.
He particularly commended its foreign exchange policy on single exchange rate.
Gill made the commendation in Abuja on Monday at the Nigerian Economic Summit.
He said while these measures might have brought economic hardship to many Nigerians, they were needed for the nation’s economic recovery.
The World Bank official advised that the measures must be sustained to return the country’s economy to the path of sustainable growth.
He said successful implementation of the measures would transform Nigeria’s 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.
“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.”
Gill, however, advised the federal government to protect vulnerable citizens from these hardships as their lives and those of 110 million children depended on it.
He advised the policymakers to be committed to the reforms for the future of Nigeria and its children hinged on this course of action.
“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.
“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.”
“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,” he said.
