World Bank List Many Problems Wrong With Nigerian Economy, Fears Many States Won't Be Able to Pay Salary
- The World Bank has come out to criticise the decision of the Nigerian government on several economic decision
- It also listed the consequences warning that many Nigerian states won't be able to pay salaries by the end of 2022
- The policies the world bank had issues with include the decision to continue the payment of fuel subsidy, exchange rate
The World Bank has again raised concerns on the several policies of the Nigerian government warning that except there is changes it will remain the same.
The latest is from the President of the World Bank Group, David Malpass at the ongoing World Bank/International Monetary Fund Spring Meetings in Washington DC.
He stressed the need for the Federal government to reconsider its policy on fuel subsidy, saying that the huge amount being expended on the policy could be channelled to other critical sectors.
Source: UGC
Concerns raised by World Bank
Fuel Subsidies
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Malpass pointed out that generalised subsidies have significant negatives effects on any system.
He said:
“One is that they are expensive because they go to everyone and they are often used by people with upper incomes than by people with lower incomes so they are not targeted.
“So, we encourage that when there is need for subsidy, either food or for fuel, that it should be carefully targeted at those most in need of it. And so, we have encouraged Nigeria to rethink its subsidy effort."
Exchange rate
The World Bank boss reiterated the need for the country to do away with the multiple exchange rate system.
He noted:
"The multiple exchange rate is complicated and is not as effective as it would be if there were a single exchange rate.”
“The most useful thing for developing countries is to have a single exchange rate that is market-based, that is stable over long periods of time as that attracts investment and so that would help.”
Trade
Malpass also added that Nigeria also has trade barriers that continue to distort trade and capital flows, urging the federal government to improve on this so as to help the country and its people move forward.
Insecurity
Commenting on the spate of insecurity in the country, he said:
“I take note of the complicated situation that they face where there are weapons flowing into northern Africa that find their way into to none Nigerians that create violence in Nigeria.
“This is a very challenging situation that the government faces. I think all over the world, people should have an understanding of the fragility that is facing several parts of the world, but in particular, the Sahel and the Sub-Saharan Africa area where the weapons flow from outside of Africa are putting a great burden on governments around the continent.
“Nigeria has huge opportunity because of its natural resources and because of its people, and I think I could see its growth accelerate with improvements in policy.”
8 celebs who have complained bitterly about the state of the nation
Some Nigerian celebrities have lent their voices to that cries of hardship as we all look forward to the ease of running businesses and living normal lives.
In the last few weeks, Nigerians have been subjected to hard life through fuel scarcity, the collapse of the national grid resulting in a national blackout, Academic Staff Union of Universities (ASUU) strike among others.
In this article, Legit.ng takes a look at some Nigerian celebrities who have said some things about the current situation.
Source: Legit.ng
