“These Policies Are Not Working, Nigerians Are Suffering” — Bauchi Governor Counters World Bank

Bauchi State Governor, Bala Mohammed, has expressed strong opposition to the World Bank’s recent endorsement of the Federal Government’s economic reforms, stating that the policies are not delivering the desired results. This contrasts with the view of the World Bank, which warned that reversing the reforms could have severe consequences for Nigeria’s economy.

At the launch of the Nigerian Development Update (NDU) in Abuja, World Bank Country Director, Dr. Ndiame Diop, emphasized the necessity of the reforms, despite their short-term challenges. He argued that sticking with the current policies would ensure long-term stability and improvement, including increased government revenues and improved external reserves. Diop warned that abandoning the reforms could spell doom for the country.

However, Governor Bala Mohammed disagreed, calling for a review of the policies. He argued that the reforms were worsening inflation and poverty, stating, “There is hunger. People are suffering… Nigerians are not enjoying the reforms.” The governor urged the Federal Government to be flexible, as he believes the reforms are failing to ease the economic hardship experienced by citizens.

Mohammed further highlighted that electricity tariffs and dwindling purchasing power are pushing people to their limits, with officials like himself facing public dissatisfaction. He cautioned that the current approach could lead to social unrest if not revised.

The World Bank, meanwhile, remains firm in its stance. Dr. Diop pointed to positive signs such as the improvement in the debt-to-revenue ratio and rising external reserves, arguing that these early gains reflect the need to persist with the reforms. He stressed the importance of using the benefits of these policies to create social safety nets for those hardest hit by inflation.

In support of the reforms, Nigeria’s Finance Minister, Wale Edun, underscored the necessity of maintaining the current economic strategy, stating that halting progress now would waste previous efforts. He noted that removing subsidies allows for greater investment in critical sectors like education and health.

The Central Bank of Nigeria Governor, Mr. Olayemi Cardoso, also defended the reforms, particularly the market-determined foreign exchange rate, which he said would stabilize over time and boost Nigeria’s exports. He added that foreign investments have already shown signs of recovery due to these policies.

Despite these assurances, World Bank Vice President and Chief Economist, Dr. Indermit Gill, cautioned that it may take a decade for Nigeria to fully recover economically. He expressed optimism about the government’s commitment but voiced concerns over the potential backlash against the reforms.