World Bank president meets Tinubu, says subsidy removal ‘right thing to do’

Ajay Banga, World Bank president, has commended President Bola Tinubu for his early macro-fiscal reforms and commitment to economic stability.

Banga spoke to journalists after a meeting with Tinubu in Abuja on Friday.

He said the World Bank would support Nigeria not only with financial aid but also with knowledge and guidance on regulatory and fiscal policies.

Banga said Tinubu’s determination to address Nigeria’s challenges, including the issue of petrol subsidy, was laudable.

The World Bank president said correcting the situation (petrol subsidy) was crucial to avoid an unsustainable fiscal deficit.

He expressed confidence that Tinubu’s efforts would set Nigeria on a path towards a prosperous future and position the country as an African champion.

“Basically, we had a very constructive discussion, not just with the president but also a number of his advisers and we talked about what was in his mind as priorities,” Banga said.

“I commended him for a lot of the things he’s doing early in his term, to ease macro-fiscal reforms and stability are very important. He’s very determined to do the right thing.

“I think you will find the World Bank supporting everything, not just financial aid, but also with knowledge and thinking around how to create the right regulatory policies and fiscal policies. So we had a very good discussion. It ended very well.

“The fact is, he’s doing things that Nigeria needs to be able to do to correct its situation.

“On fuel subsidy, you have a fiscal deficit that remains unsustainable. So, he’s trying to do all the right things. Now, the question is, how do you navigate through the next few months, where you can send the economy on the right parts of the future?

“As I discussed, Nigeria has to be an African champion. If Nigeria becomes an African champion, then we know that the African continent has a country with the largest gross domestic product (GDP) headed in the right direction. That’s his vision and that was the vision we shared.”

Speaking also on Nigeria’s growth forecast, Banga said it was important to focus on the future rather than past predictions.

He added that he would not give too much credence to earlier forecasts, while acknowledging the ongoing reforms.

“At this stage when he’s doing so much reform? I wouldn’t pay too much credence to any forecast that was made earlier. So, I would rely more on where we are going, not a past forecast.”