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World Bank lists 10 reforms FG must implement to save the economy as 5m Nigerians fall into poverty in 2022



The World Bank announced has revealed that Nigeria’s growing inflation rate has increased the number of poor Nigerians by 5 million in 2022. The bank said this in its latest report titled, ‘Nigeria country economic memorandum: charting a new course’, published on its website.

According to the bank, things might become worse unless significant reforms are made to the way the Nigerian economy is managed.

In the report, the bank also said Nigeria’s potential and growth has been stagnated over the past decade.

It noted that the country needs create more jobs to rise to its potential, the Cable reports World bank said:

“Nigeria has a lot of promise, but during the last 10 years, progress has stalled. Between 2011 and 2021, the hard-won income increases from the 2000s vanished as a result of a lack of more extensive structural changes, global shocks, incompatible macroeconomic policies, and rising insecurity.

“While there is no magic potion to boost growth, Nigeria may once again become a rising economic star if it quickly puts in place a complete package of daring reforms.

The reforms suggested by World Bank that Nigeria’s government can adopt for faster and more inclusive growth include:

Adopt a single and market-reflective exchange rate.

Facilitate trade and boost domestic value added by removing import and foreign exchange restrictions.

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Increase non-oil revenues by raising value-added tax (VAT) and excise rates and strengthening tax administration.

Eliminate the petrol subsidy by establishing a compact that also protects the poor and vulnerable.

Increase access to finance by strengthening the institutional.

Contain inflation by reducing the federal infrastructure for financial intermediation government’s recourse to Central Bank Nigeria (CBN) financing.

Boost competition by embedding it into policy, enhancing enforcement, and simplifying rules to lower costs.

Boost power generation by investing in infrastructure to reduce technical and commercial losses.

Reduce insecurity by strengthening the rule of law and facilitate transport connectivity by reducing interstate transportation costs.

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