The World Bank reports that President Tinubu’s economic reforms have led to a staggering increase in Nigeria’s poverty, affecting over 104 million citizens.
This transformative agenda, involving the removal of the petrol subsidy and restructuring the foreign exchange market rate, has triggered a surge in living costs, intensifying the hardship for many.
The World Bank’s latest report highlights a concerning shift, indicating a rise in the number of poor people from 95 million in 2021 to a staggering 104 million in the present.
Contrary figures from the Nigerian Bureau of Statistics (NBS) present a complex picture, with 2019 and 2020 recording 82.9 million and 85.2 million respectively.
Inflation has surged to record levels, reaching 27.3% Year-on-Year in October 2023.
The removal of the gasoline subsidy is identified as a significant contributor, particularly impacting the less privileged.
The FX market’s volatility remains a concern, necessitating a clearer understanding of oil revenues and their impact on Federation revenues.
World Bank Country Director for Nigeria, Shubham Chaudhuri, acknowledges the necessity of the petrol subsidy and FX management reforms but emphasizes the need for coordinated fiscal and monetary policies.
The report calls for clarity on oil revenues, especially pertaining to Nigeria National Petroleum Corporation Limited (NNPCL).
The report anticipates that sustained macroeconomic stabilization reforms can lead to a 3.5% annual economic growth between 2023-2026.
This growth is contingent on addressing issues such as inflation control, FX market stability, fiscal consolidation, and removing structural barriers to growth.
The World Bank urges transparency from the Nigerian National Petroleum Company Limited (NNPCL), calling for the public disclosure of its Statement of Accounts and revenue inflows.
The removal of the subsidy is expected to yield substantial fiscal savings, urging a thorough audit of NNPCL’s accounts.
The Minister of Finance, Mr. Wale Edun, signals forthcoming changes, including a review of salary structures in 2024.
Additionally, measures to encourage holders of foreign currency accounts to invest in attractive instruments are outlined.
