The World Bank has suggested four policies that President Bola Tinubu’s administration should adopt to reduce the cost of governance while providing relief to Nigerians.
These policy recommendations are contained in the World Bank’s Nigeria Development Update report for October 2024, obtained by Nairametrics.
Tagged “Staying the Course: Progress Amid Pressing Challenges,” the report assesses recent economic and social developments and prospects in Nigeria, placing them in a long-term and global context.
Policies Needed to Deepen Tinubu’s Reforms
According to the World Bank, the Nigerian government is weak when it comes to reducing the cost of governance.
The financial institution criticized wasteful spending in government, among other issues.
To provide urgent relief to the Nigerian population, the bank, which rates the Nigerian government as “average,” advised accelerating targeted cash transfers.
Here are its recommendations:
- Cut wasteful expenditures that are not essential, such as the purchase of vehicles and external training.
- Reduce the cost of collection for MDAs and government-owned entities.
- Accelerate the rollout of targeted cash transfers.
- Allocate savings from PMS subsidy removal to sustainably expand cash transfers and other well-targeted support.
More Insights
The report explained that the Nigerian population faces a prolonged rise in the cost of living driven by high inflation, especially for food products, which is outpacing normal earnings growth.
“It is thus essential to ensure that social protection systems offer comprehensive coverage, adequate benefits, and flexibility to adapt to shocks. Ramping up social protection efforts and improving the quality of spending on development priorities is vital to help households cope with the difficult economic situation,” the report added.
The Bank noted that, on the spending side, expenditures are expected to rise due to a higher wage bill from raising the minimum wage, increased capital investments in physical and human capital, and expanded social programs.
What You Should Know
Recall that in August of the year, President Bola Tinubu barred unauthorized officials from attending the forthcoming United Nations General Assembly (UNGA) meetings in New York, United States.
The directive, according to the government, aimed to reduce the cost of governance, as widely advocated by Nigerians.
This directive follows less than a year after the Presidency was criticized by several Nigerians for its bloated number of delegates at the COP28 Climate Summit in Dubai, United Arab Emirates (UAE).
Chief of Staff to the President, Femi Gbajabiamila, stated, “During recent protests, there were talks about reducing the cost of governance. Everyone is waiting to see if Nigeria, as in the past, will send the ‘largest delegation’ to UNGA.”
He noted that, from experience, some Nigerians use the opportunity of such international meetings to pursue personal business interests.