By Ben Ngwakwe
A Senior Lecturer at the Federal University of Kashere, Gombe State Dr Tukur Yemi, has berated the World Bank’s Senior Vice President, Indermit Gill, over his recent statement where he suggested that Nigeria must endure 10 to 15 years of economic hardship to achieve prosperity.
Yemi said such assertion has caused significant distress among Nigerians, who are already struggling with the effects of petrol subsidy cuts and rising living costs.
The former Head of Department stated that the Gill’s remarks, “made at the 30th Nigerian Economic Summit in Abuja, reflected the World Bank’s continued support for economic reforms thatll prioritised macroeconomic stability through fiscal austerity and deregulation.”
He alleged that such reforms may align with the bank’s broader agenda of promoting global economic efficiency, they often come at the expense of social welfare and equity in countries like Nigeria.
“Historically, such approaches have led to deeper inequality, undermined local economies, and heightened social unrest, as seen in several countries: Argentina in the 1990s: Despite austerity measures promoted by international financial institutions, including the World Bank, Argentina’s economy collapsed in 2001, plunging millions into poverty and leading to one of the worst financial crises in its history,” he said
Other are Greece after the 2008 Global Financial Crisis where he pointed out that the austerity programs enforced by the IMF and World Bank resulted in severe unemployment, increased poverty, and a drastic reduction in public services without achieving the desired economic recovery for many years.
According to him, “Zimbabwe’s Economic Structural Adjustment Program (ESAP) in the 1990s: Heavily influenced by the World Bank, ESAP led to increased unemployment, inflation, and a decline in social services, further destabilizing an already fragile economy.”
These examples, Yemi disclosed that the World Bank’s focus on market liberalisation and fiscal austerity often disregards the unique social, political, and economic contexts of the countries it seeks to support. Such rigid, externally imposed policies exacerbate inequality and hardship rather than alleviating them.
The scholar said the challenges could be overcome through proven effective solutions such one Promote Economic Diversity where countries like South Korea and Malaysia successfully fostered economic resilience by investing in local industries and supporting diverse sectors, including agriculture, technology, and manufacturing and approach, not only provided jobs but also safeguarded local economies from external shocks.
“Another solution is inclusive Development, citing, Rwanda’s focus on home-grown solutions has significantly reduced poverty while achieving rapid economic growth as well as by tailoring policies to local needs, Rwanda has built a more inclusive economy that benefits all segments of society.
“Listening to Local Voices: Brazil’s Bolsa Família program, designed based on local knowledge of poverty dynamics, has successfully reduced inequality by addressing root causes. This model lifted millions out of poverty through solutions tailored to specific challenges,” he said.
While recommending the following for Nigeria, Yemi advocated that Federal and State Governments to encourage economic diversity that promote the growth of local industries, protect citizens’ purchasing power, and support the informal economy to foster genuine and sustainable development.
He added, “This approach will help Nigeria mitigate the impact of external shocks while improving living standards.
“Listen to Local Voices: Engage local experts and stakeholders in shaping economic policies to ensure they are context-sensitive and aligned with Nigeria’s unique social and economic dynamics. Policies that arise from within are more likely to succeed because they consider local strengths, vulnerabilities, and aspirations.”
These benefits if it is religiously followed, the senior lecturer said, will lead to economic stability hence, support local industries and economic diversity reduce Nigeria’s vulnerability to global fluctuations, ensuring a more stable and resilient economy.
He concluded that it is essential that they adopted the policies that balance economic growth with social welfare and inclusivity. While the World Bank’s interests may lie in promoting fiscal discipline and market liberalization, the needs of Nigerians must come first.
He urged the leaders to champion bold, forward-thinking leadership that addresses Nigeria’s urgent needs and secures a prosperous future for all.
“We must hold our leaders accountable for ensuring that local realities and human development are prioritised over external financial prescriptions,” Yemi noted.
