The Federal Government received commendation from the bank for implementing what it deemed 'bold reforms' essential to rescue Nigeria from a fiscal cliff.
Despite recognizing the current hardships as temporary, the report also acknowledged that these policies have significantly heightened the cost of living, plunging more Nigerians into hardship, with 104 million now living below the poverty line.
The World Bank report further revealed a rise in the number of poor people in Nigeria, escalating from 95 million in 2021 to 100 million in 2022. In contrast, the Nigerian Bureau of Statistics (NBS) indicated figures of 82.9 million in 2019 and 85.2 million in 2020.
Contained in its World Bank Nigeria Development Update, entitled 'Turning the Corner: Time to Move From Reforms to Results', the bank emphasizes the necessity to sustain the reform momentum, completing the ongoing reforms while addressing the associated costs.
The Federal Government received commendation from the bank for implementing what it deemed 'bold reforms' essential to rescue Nigeria from a fiscal cliff.
It further stated: ‘‘Inflation remains at record high levels for Nigeria, 27.3 per cent Year-on-Year, YoY, in October 2023, partly driven by the one-off price impacts of the removal of the gasoline subsidy.
‘‘The impact of this is especially hard on poor and vulnerable citizens. The FX market has remained volatile and in a period of continuing adjustment to the new policy approach, with significant fluctuations in the exchange rate in both the official and the parallel markets. Revenue gains from the FX reform are visible.
‘‘However, there is a need for more clarity on oil revenues, especially the financial gains of Nigeria National Petroleum Corporation Limited, NNPCL, from the subsidy removal, the subsidy arrears that are still being deducted, and the impact of this on Federation revenues.”
