The World Bank said on Thursday that Nigeria must cut government waste and direct spending to targeted poverty programmes and stick to realistic budgets to avoid unplanned spending.

This was contained in the recommendations from the World Bank’s latest Nigeria Development Update (NDU) Report, titled “Staying the Course: Progress Amid Pressing Challenges, unveiled in Abuja on Thursday.

The World Bank also urged Nigeria to maintain a tight monetary policy and continue to improve policy effectiveness until a sustained disinflation path is achieved.

Alex Sienaert, the World Bank’s Lead Economist for Nigeria, said the NDU title highlighted the need to sustain these policies while addressing structural issues to combat inflation and promote long-term investment, growth, and job creation.

While giving an overview of the report, Sienaert said another recommendation was to ensure the exchange rate was unified and reflected market conditions while expanding the foreign exchange market.

He said it was also recommended that to reduce debt risks and create room for development and poverty-focused spending, four key areas must be focused on.

“Continue removing the fuel subsidy and increasing transparency in the oil sector, and increase non-oil revenues through better tax policies.

He added that another recommendation was the protection of vulnerable groups by expanding cash transfer programmes and strengthening social safety nets.

Sienaert said there was also the need for the Nigerian government to continue addressing long-standing structural constraints.

“These key recommendations on policy priorities will help build upon Nigeria’s macro-critical reforms and ignite growth and job creation,” he said.

He said the recent reforms were starting to restore macroeconomic stability.
“GDP is projected to grow by 3.3 per cent in 2024, rising to an annual average of 3.7 per cent over 2025-2027.

VANGUARD