Human-centric economic policies or nothing!
The World Bank’s recent endorsement of Nigeria’s economic reforms raises pressing questions about its priorities and the impact on the Nigerian populace. Over the past five years, Nigeria has borrowed more than $24 billion from the global lender, with the Bola Tinubu administration alone accruing $6.45 billion in just 16 months.
This borrowing spree coincided with a deepening crisis following Tinubu’s controversial removal of petroleum subsidies and the floating of the naira, which sent food prices and transportation costs soaring. As basic necessities became increasingly out of reach, desperate Nigerians scrambled for survival, often with tragic consequences.
The past year has seen two significant protests erupt over hunger and poor governance, underscoring the public’s growing frustration and despair. Inflation has rendered the naira nearly worthless, compounding the struggles of a population already grappling with chronic power shortages. With petrol prices exceeding N1000 per litre, many cannot even afford to fuel generators necessary for basic electricity.
Despite the chaos, the World Bank continues to praise Tinubu’s stringent reforms, alongside the International Monetary Fund, raising alarms about the disconnect between economic policy and the lived reality of ordinary Nigerians. The applause for policies that exacerbate hardship begs the question: what is the World Bank truly aiming for? The situation demands a reevaluation of priorities that favour economic metrics over human welfare, particularly in a nation facing such dire challenges.
As Nigeria stands at a precipice, it is imperative for both the World Bank and the Tinubu administration to reconsider the implications of their actions and strive for a path that genuinely uplifts the people rather than exacerbates their suffering.
Tinubu recently proclaimed that he should be recognised in the Guinness World Records. Such bravado feels like a cruel mockery of the pain his policies have caused. The World Bank, seemingly disconnected from the reality faced by Nigerians, insists that the administration must continue its harsh reforms. They claim that in a decade or so, Nigeria will rise as a major player both in Africa and globally—a vision that seems unrealistic for a nation in distress.
ActionAid Nigeria, a non-governmental organisation focused on development and rights, has strongly criticised this stance: “It is not just unacceptable but inhumane to expect Nigerians to endure another 15 years of hardship in the name of reforms that have repeatedly failed.
“Millions struggle daily to afford food, fuel, and basic services. Demanding that they wait over a decade for improvements is a deep affront to their dignity and a reckless gamble with the future of the nation.”
This expectation of prolonged suffering, framed as a pathway to progress, ignores the urgent needs of everyday citizens. The impact of these policies is profoundly felt, intensifying the struggles of a nation already on the brink. It is important to recognise that while international bodies may focus on economic metrics, they cannot overlook the human cost involved. Nigerians deserve immediate support and respect for their dignity, not empty promises of a distant better future.
The World Bank has often prioritised lending over the well-being of borrower countries. In the late 1980s, influenced by the IMF, Nigeria cut subsidies for its manufacturing sector and devalued the naira. Citizens were urged to tighten their belts under a harsh Structural Adjustment Program.
The outcome was disastrous: the manufacturing sector collapsed, textile companies shut down, and tens of thousands lost their jobs. As a result, Nigeria’s GDP plummeted, and its borrowing and debt situation deteriorated significantly. Reforms can be beneficial, but if they harm the very people they’re meant to help, they should be avoided. Interestingly, the World Bank remains silent on the evident corruption in neighbouring countries.
The subsidy system is fraught with corruption and lack of transparency; it’s unclear if any savings have actually been realised from its removal. While the World Bank has praised this removal, it also noted that Nigeria continues to pay subsidies. Furthermore, the institution does not scrutinise how borrowed funds are utilised. President Tinubu has increased revenue through various taxes and fees, yet the destination of that money remains unclear.
At its inception in 1944, the World Bank aimed to provide essential loans to help countries like Nigeria build infrastructure and combat poverty. Yet decades later, despite billions in financial support, Nigeria’s education, healthcare, and power sectors remain in disarray. The World Bank reports that over half of Nigeria’s 233 million citizens live below the poverty line. The unfortunate reality is that it seems indifferent.
Funds meant for development are often squandered on extravagant expenditures—presidential aircraft, luxury vehicles for lawmakers, and lavish living quarters for officials. Instead of holding the government accountable for these misallocations, the World Bank appears to endorse President Tinubu’s reforms, which only exacerbate the struggles of Nigeria’s poorest citizens. This raises serious questions about the Bank’s true priorities and agenda.
