Indermit Gill, the World Bank Vice President and Chief Economist, has supported Central Bank Governor Olayemi Cardosoâs foreign exchange unification policy.
Gill also commended the CBN governor for his approach to managing inflation, pointing out that increasing interest rates by over 800 basic points in the last nine months was the right direction.
Gill made these remarks while speaking at the 30th Nigerian Economic Summit in Abuja on Monday, October 14, 2024.
Under Yemi Cardoso’s leadership, the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) has implemented five interest rate hikes.
The first increase raised the benchmark rate from 18.75% to 22.25%, followed by successive hikes to 24.75%, 26.25%, and a 50-basis-point increase to 26.75% in July 2024.
In the black market, it has reached N1,700 to the US dollar, while in the official market, it has consistently hovered around N1,650 per dollar.
Speaking further, Gill admitted that while the policy has led to hardship for many in Nigeria, especially the vulnerable, he stressed that the policies of Tinubu’s government are necessary for the nationâs economic recovery.
He said:
Vanguard reports that he urged policymakers to stay committed to the reforms but called for more government intervention, saying:
Rounding his speech, Gill underscored the urgent need for job creation, stating,
TimesNow.com.ng earlier reported that the Nigerian government spent over N6bn on debt servicing payments in the first half of 2024.
The amount exceeded the debt service of 2023 N3.58 trillion, representing a 69% increase.
Experts said the debt servicing showed Nigeriaâs rising fiscal vulnerability.
Proofreading by James, Ojo Adakole, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
