World Bank offers fresh recipe for rapid recovery of Nigeria's economy

From the World Bank came a fresh recipe for the rapid recovery of Nigeria's economy. A regime of tight budgeting and greater accountability in the bank's view must mark the path of the nation to economic rebirth. Efforts of economic recovery, according to the bank should also exist in tandem with the close monitoring of developmental projects and concrete information dissemination on them.
The bank's Country Director for Nigeria, African Region, Mark D. Tomlinson proffered this economic path. He said that although the economy had been improving since the inception of democracy two years ago, the initial expectations of the World Bank were yet to be met in several areas.
According to Tomlinson, governance, infrastructural development and enhancement of vital economic indices to check inflation, ensure access to good water, roads and electricity were still non-existent.
"The World Bank can do little to change the scenario to attain the ideal situation. "The key thing is for Nigerians to use their resources more effectively." Nigeria is indebted to the World Bank to the tune of $ 2.3 bn but this does not warrant its tagging assistance to conditionalities or meddling in the nation's governance," he declared.

Tomlinson stated that the bank remained a viable partner in progress but could only play a role where invited to support the government's efforts. He ruled out imposing anything on the government even where the bank is not happy with its programmes, contrary to the popular view of strings being attached to all bank's assistance.
The President Olusegun Obasanjo administration, according to him has only succeeded in pulling the country out from the doldrums but not beyond the poverty level of 20 years ago. But with the bank's prompting and governments (federal and states) turning to projects that focus on poverty alleviation and ensuring effective following in their execution, things will change greatly in the next 10 years, Tomlinson assured.
However, he stressed that for this tobe, there would be the need for greater accountability and improvement in governance and all Nigerians had a role to play in this regard. The media's role to sensitise the populace, engage in in-depth analytical and investigative reportage and probity was also highlighted by the World Bank Chief as indispensable for enforcing accountability.
The World Bank, he said, is training Nigerian journalists to equip them for this role like in other nations. He maintained that to directly enforce accountability was out of the way for the bank, stressing said that the bank could only do anything with the support of Nigerians to get more accountability.
"Bringing poor and good examples on the table yes. But not influencing policies because Nigeria is a big nation". The official regretted that Nigerians were still wallowing in penury in the midst of plenty because of poor planning and tardy project implementation.

Citing the statistics on daily gas flaring in the country, Tomlinson said if properly harnessed, that would generate a lot of funds and meet the electricity needs of Nigerians and their neighbours. With the wasted gas volume put at over 30,000 MW, it could generate more than enough enjoy of all the nations in sub-Saharan Africa and two-thirds of the power need for the African continent, Tomlinson stressed.
Although plans for the privatisation of the National Electric Power Authority (NEPA) were hatched long before the bank's involved, the bank has provided $ 10 mm towards media campaign, consultancy and miscellaneous services. Also, the official supported deregulation of fuel pricing and privatisation of water in Lagos State.
He noted that the measure would offer more competitive pricing for Nigeria's brands. According to him, selling at subsidised prices when 20 % of Nigerian oil products are exported across the borders amounted to "sending Nigeria's money to your neighbours." Beside, smuggling will become unattractive to people when the prices are raised, he argued.
On why investors may notbe so easily show interest in the existing refineries, Tomlinson said, it was doubtful if they (refineries) had "economic of scale". According to him, if investors could buy cheaper from elsewhere they would be scared to sink their money where they are not sure.

The refineries have been operating at far below installed capacities. The World Bank official said only Nigerians could make things happen and not outsiders and noted that the challenge remained how to provide the majority of Nigerians with access to basic infrastructure. Tomlinson was, however, happy with reports on projects in many states of the federation.