The damning World Bank report on Nigeria and lack of purpose, transparency in governance

By Hadiza Mohammed

We recommend a real structural reform that will ensure probity, transparency and accountability in governance and the use of economic resources. The NASS should do its assigned constitutional duty. The citizens must hold the leaders accountable. And until that is done this official recklessness and impunity will continue.

To most of us Nigerians in Diaspora, the news and reports from the home front since the coming of the All Progressives Congress (APC) regime have always made us fret. When it is not about massacre of innocent citizens, it would be about mass kidnapping, human rights abuses, corruption and embezzlement or borrowing for phantom projects. The recent World Bank report on Nigeria which centers on early childhood development, economic growth, poverty and inflation, fiscal policy administration is one of those fear-inciting news. The report contained in the Nigeria Development Update (NDU), a biannual report that assesses economic and social developments in the country and provides policy recommendations for sustainable growth indicates that the country’s economic outlook is gloomy. The current report released on April 7 is entitled ‘Nigeria’s Tomorrow Must Start Today: The Case for Early Childhood Development’.

The data released about the early childhood development indicate that Nigeria continues to face significant child development challenges with high infant mortality rate as over 11% of children die before the age of five and many failing to meet basic developmental milestones. Thus, the report emphasized the importance of investing in early childhood development, noting that stronger human capital is critical to translating recent macroeconomic reforms into improved living standards and job creation. The question here is: is there any macroeconomic reform in the country at present? And what constitute economic reform? And as far as I am concerned there is no economic reform in the country.

On economic growth, the report indicates that Nigeria’s has averaged 4% in 2025 with a projected average of 4.2% between 2026 and 2028. The report has it that despite the drop in inflation rate, poverty situation has deteriorated, with 63% of the population living below the poverty line. That is over 140 million Nigerians are multi-dimensionally poor.

Moreover the World Bank reports indicating that, while Nigeria’s Federation Revenue grew to ₦84 trillion in just three years, over N34.53 trillion representing about 41%, was reportedly diverted from the federation account over three years via “first-line charges,” creating a “hidden system” that reduces funds for state and local development. In its conclusion, the Bank recommends strengthening social safety nets, reducing food inflation through improved agricultural logistics, and improving transparency in public spending.

A cursory glance at this report shows glaringly that Nigerian economy is badly managed under the present administration. There are obvious cases of fiscal recklessness, corruption, lack of transparency, misplaced priority and poor policy design. The economy of Nigeria is in the hands of poor managers who have not been able to diagnose and prescribe the right medicines for the economy. The trial and error approach has not worked. The removal of petroleum subsidy, the floating of the exchange rate and the hike in tax rate are not does not constitute economic reforms in an economy that has more than half of its population living below the poverty threshold.

There is a surge in the revenue earned by the government in the last three years and the government has increased the tax rate without any form of subsidy or social security provisions and yet there is no visible impact on the economy and instead the poverty rate has increased to frightening dimension and the government has continued to borrow on daily basis internally and externally. The government has borrowed from everywhere – from ways and means, the banks, and pension funds and recently from unclaimed dividends and dormant accounts.

It is a clear contradiction that government revenue is burgeoning and poverty is increasing in leaps and bounds at the same time. The only explanation for this paradox is recklessness, inefficiency and corruption that has created leakages and diversion of public funds. The reference to a sizable proportion of government revenue not reaching the federation account before spending means that the funds were not appropriated. That means that the National Assembly that is in charge of appropriation are not properly doing their oversight duty.

The purpose of economic management at the center is not to accumulate or maximize revenue collection but to create enabling environment that will stimulate economic activities and policy measures that will maximize the welfare of the citizens. Any policy or reform that did not improve the quality of life of the citizens is no reform. The policy of the present government is increasing the cost of governance, cost of doing business, stifling economic activities and forcing firms to operate below capacity. This has a contracting effects on the economy.

We recommend a real structural reform that will ensure probity, transparency and accountability in governance and the use of economic resources. The NASS should do its assigned constitutional duty. The citizens must hold the leaders accountable. And until that is done this official recklessness and impunity will continue.

Hajia Hadiza Mohammed can be reached at hajiahadizamohammed@gmail.com