Governor Bala Mohammed of Bauchi State on Thursday faulted the World Bank on the effectiveness of President Bola Tinubu’s economic reforms at the launch of the Nigeria Development Update report in Abuja......KINDLY READ THE FULL STORY HERE👈
Mohammed criticised the policies, saying they failed to deliver the expected economic relief.
But the World Bank countered that the reforms, although painful, were crucial for Nigeria’s long-term stability and growth.
The Bauchi governor further highlighted the financial difficulties faced by state governments, stating that revenue allocations were insufficient to meet critical needs.
He said, “We should go back to the basics. Nigerians are not enjoying the regime at this time across board, not only the Federal Government, including the state and local governments. Therefore, the onus rests on you, the finance and the managers of the economy.
“We need to come up with a budget programme with economic policies that will reduce hardship. The money that we are sharing is not enough. The report spoke about employment, wages, and how many per cent of Nigerians are even employed. Most of our people live in the informal sector; we should look at how we can make them self-employed.
“The purchasing power has dwindled, these policies are not working and you know that.”
He complained that inflation was eroding the value of funds distributed through the Federation Account Allocation Committee, leaving state governments struggling.
“With all humility, please review your policies, they’re not working. Even the growing FAAC allocation is not enough because inflation is eating it up and the purchasing power of the people is dwindling, we are all living with these people and I can tell you we are at risk of being lynched because of your policies,” the Bauchi governor said.
On the issue of minimum wage, Mohammed disclosed that Bauchi State was still paying the previous wage of N33,000 but has set up a committee to consider the new wage implementation.
He pointed out that while some states can afford N70,000, Bauchi is prioritising sustainability.
“Some states can afford N70,000, some cannot. We in Bauchi State are paying the old minimum wage religiously. We’re looking at paying the new minimum wage as soon as possible,” he said, adding that infrastructure development remained a challenge after meeting wage obligations.
In his presentation, Alex Sienaert, the World Bank’s lead economist for Nigeria, said Nigeria needed more productive jobs as more employment did not translate to reduced poverty.
He also said that the increase in minimum wage would only impact about four per cent of Nigerians.
He noted, “The Federal Government of Nigeria increased the minimum wage, which will affect only a small share of the population. Raising the minimum wage directly affects only 4.1 per cent of working age Nigerians.”
He further stressed the importance of creating productive jobs to tackle poverty, noting that employment alone is not enough unless the jobs are well-paying.
(PUNCH)