How Nigeria Can Tackle Poverty, By World Bank

• …advises CBN to sustain monetary tightening
• Economy begging for direction, says LCCI

For Nigeria to achieve a major breakthrough in checking poverty that is afflicting the population, the World Bank has advised that it must create wage jobs through macro-fiscal stability, growth, and private sector development, complemented by building human capital that will absorb about 12 million people into the labor market in the next 10 years.

In addition, the bank suggested the adoption of shortand medium-run policies to boost productivity in farm and non-farm household enterprises to provide relief.

It also delved into the reforms by the Central Bank of Nigeria (CBN), saying that the monetary policy stance needed to remain tight until a sustained disinflation path is achieved, along with continued improvements in policy transmission.

The global lender suggested these recommendations and others as solutions to the monumental economic challenges faced by Africa’s biggest nation, which have pushed her sizable portion of population to miserable living standards.

Speaking at the launch of Nigeria’s latest Development Update report (NNDU) titled “Staying the Course: Progress amid Pending Challenges,” on Thursday in Abuja, World Bank Lead Economist for Nigeria, Mr. Alex Sienaert, in his presentation said: “Short and medium-run policies to boost productivity in farm and non-farm household enterprises would provide relief while higher-paying jobs are not available and could support some to succeed and grow. Policy initiatives for women and youth can improve the labor market’s poverty-reducing potential.”

The unveiling of NDU was attended by the Governor of the Central Bank, Mr. Olayemi Cardoso, Ministry of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, Bauchi State Governor, and Alhaji Bala Mohammed, Minister of Budget and Economic Planning.

Senator Atiku Bagudu, Senior Vice President, the World Bank Group, Mr. Indermit Gill, Ndiame Diop, World Bank Country Director for Nigeria, and others from the private sector. The plenary session was moderated by Mrs. Nancy IIlo, Nnaji of Money Show on AIT.

The bank reckoned with current policy reforms embarked upon by the subsisting administration, which it said looks pretty good to returning the country to her past glory.

“Previous distortionary and unsustainable macroeconomic policies were hindering Nigeria from achieving its immense potential. Major reforms have been undertaken to restore macroeconomic stability since May 2023.

The government started to move towards market-based pricing of gasoline to address the large fiscal cost of subsidised pricing.” “The CBN initiated major FX policy reforms that resulted in a unified, better regulated, and market-reflective official exchange rate. The new policy direction is essential, but in the short term it has added to already intense pressures on households and firms.

The indications that the macroeconomic situation is improving are encouraging, providing oxygen to the economy, and the necessary condition for growth to ignite with the help of additional, complementary measures.

The monetary policy stance needs to remain tight until a sustained disinflation path is achieved, along with continued improvements in policy transmission.”

“On the fiscal front, focusing on four key areas can reduce debt risks and create more space for development and pro-poor spending. In parallel with stabilizing the macroeconomy, it is critical to protect the poor and the economically insecure by enhancing the social protection framework.

“Poverty is high and rising in Nigeria. However, employment on its own is not enough to lift people out of poverty. Nigeria needs productive jobs, but these are scarce.