Afenifere warns FG against World Bank advice on social services

The pan-Yoruba socio-cultural and political organization, Afenifere, on Saturday, urged the federal government to be cautious of recent advice from the World Bank (WB), which suggested reducing support for social services in Nigeria.

The group noted that countries that adopted prescriptions from the World Bank and the International Monetary Fund (IMF) often ended up in worse situations.

Speaking earlier this week in Abuja, Mr. Indermit Gill, Senior Vice President of the World Bank Group, recommended the withdrawal of government support for social and economic programmes and the floating of the naira. Gill made these comments during the three-day Nigerian Economic Summit Group (NESG) event, which began on October 14, 2024.

According to Gill, the positive effects of the Bank’s policy recommendations may only become evident in 10 to 15 years.

However, in a release signed by Afenifere’s National Publicity Secretary, Jare Ajayi, the group advised the federal government to approach the advice with caution.

“Firstly, the current administration under President Bola Ahmed Tinubu will have completed its tenure long before the benefits of the World Bank’s recommendations manifest. This implies that the government could be remembered only for the sacrifices and hardships endured by citizens, while another administration might take credit for any eventual dividends, if at all.

Therefore, instead of following the Bank’s policies, Nigeria should adopt strategies that boost local businesses and encourage local initiatives to reduce dependence on imports,” the statement read.

Ajayi further noted that countries that adopted prescriptions from the World Bank and the International Monetary Fund (IMF) often ended up in worse situations.

He cited examples such as Mexico, Mozambique, Ghana, Argentina, Thailand, South Korea, Indonesia, and the Democratic Republic of Congo.

He also referenced Malaysia, which, under Prime Minister Mahathir Mohammed, rejected the Bank’s conditions, such as budget cuts, subsidy removal, and currency devaluation, in favor of local policies. Despite initial difficulties, Malaysia’s economy has since thrived.

“What we are saying is that while it is important to lay a good foundation for economic recovery, the models being proposed by the World Bank and IMF should be avoided, considering the harm they have caused in countries that implemented them,” Ajayi stated.

While commending President Tinubu’s focus on reducing bureaucratic bottlenecks, enhancing productivity, and promoting agriculture and entrepreneurship, Ajayi expressed concern that the socio-economic environment remains constrained.

At the NESG summit, President Tinubu, represented by Vice President Kashim Shettima, reiterated his administration’s commitment to growth and stability under the theme “Collaborative Action for Growth, Competitiveness, and Stability.”

Afenifere also noted the rising energy costs, stressing that energy is not only a driver of economic growth but also essential to health and security.

The group noted that soaring prices for petrol, gas, and electricity have forced many out of business, with the resulting unemployment contributing to crime and insecurity.

Currently, petrol prices range between N1,000 and N1,400 per litre, while a kilogram of cooking gas costs around N1,500. In comparison, petrol was priced at N197 per litre in 2023, and gas was half the current price.

Inflation, according to the National Bureau of Statistics (NBS), reached 32.70% in September 2024, with food prices skyrocketing—bags of rice now sell for N90,000 to N105,000, compared to N40,000 earlier this year.

To alleviate the impact of these rising costs, Afenifere urged the Nigerian National Petroleum Company Limited (NNPCL) to deliver on its promises to revamp refineries, particularly in Port Harcourt.

The group criticised the NNPCL for repeatedly missing deadlines since 2022. Ajayi referenced a statement by OPEC Secretary General Haitham Al Ghais, attributing high fuel prices in Nigeria to excessive taxes rather than market forces, and called on the NNPCL to reduce prices.

“The logical step is for the NNPCL to reverse its recent price hike and ensure that its refineries resume production immediately,” Afenifere said.

The group also stressed the need for home-grown policies to support local businesses, promote innovation, and reduce reliance on imports.

“In many cases, implementing policies prescribed by Bretton Woods institutions has made governments unpopular. Given the World Bank’s projection that it will take 10 to 15 years for Nigerians to feel the benefits, it would be wiser to adopt home-grown strategies that prioritize agriculture, support local manufacturers, attract local investors, and tackle insecurity head-on,” the statement concluded.