4 Reasons Why Nigeria Can Keep Scoring

I just returned from a short trip to Abuja, the capital of Nigeria, where I was overdue for a visit —my last trip there dating back to 2012. Two packed days that left me optimistic for the future of Africa’s biggest economy and most populous country. During my visit, I also witnessed the power of an entire nation cheering for the Super Eagles, the national football team.

Here are four reasons why Nigeria is on the move.

Bold and meaningful reforms??

Since taking office in May of last year, President Bola Tinubu has been delivering on his promise to implement difficult but necessary reforms, including removing the decades-old gasoline subsidy and unifying the exchange rate to promote confidence among investors and foster economic growth. Why do these reforms matter?

Consider this: Nigeria was spending more than $10 billion a year on subsidizing gasoline —more than the budget allocated to health, education and social protection combined—a colossal amount of money that can be invested in human capital and sustainable infrastructure. On the monetary side, getting rid of the country’s multiple exchange rates, along with other reforms, will enhance transparency, attract investments, and promote economic stability.??

Continued progress on the interlinked reforms can enable the economy to turn the corner. Yet Nigerians have already had to cope with sharp increases in gasoline prices and the exchange rate, while the benefits in terms of lower inflation and higher growth will take more time to become apparent. The short-term cost of living pressures caused by these reforms must be counterbalanced by measures that protect the most vulnerable.

This balancing act was at the core of my discussions this week with the Nigerian authorities, including the Minister of Finance, the Minister of Budget, the Governor of the Central Bank, and President Bola Tinubu. To ensure the success of the reform agenda, communicating why these reforms will benefit everyone will be essential.

And 世界银行 is committed to helping Nigeria harness its economic potential by promoting macroeconomic stability while ensuring that the poorest benefit from social programs.??

Banking on the private sector?

Nigeria is home to thriving entrepreneurs who shared with me their vision on how the country could become an economic powerhouse. Take the paradox of energy poverty in a land of plenty. Nigeria, a country with huge solar potential, has also the largest electricity access deficit in the world with over 85 million people (more than the entire population of Germany) without access to electricity. And even those connected to the grid face frequent power outages. Economic losses from unreliable electricity supply in Nigeria are estimated to be around 5-7 percent of GDP annually.??

The World Bank has a bold plan for Nigeria where we are working with the authorities on grid reforms and sector performance improvements. We have also launched a groundbreaking program called DARES (Distributed Access through Renewable Energy Scale-up), which will provide access to clean energy to 20% of the unelectrified population by 2030 through private sector-led interventions.

That’s what I call impact at scale. I had a fantastic discussion with Damilola Ogunbiyi , the CEO of Sustainable Energy for All (SEforALL) , and former head of the Nigerian Rural Electrification Agency, one of the most passionate advocates for renewable energy for all and a trailblazer for women in the energy sector.??

Nigeria has the highest number of unicorns in Africa, and digital transformation was also high on my agenda. Let me share an interesting fact: only 4-10% of international broadband bandwidth arriving in Lagos, the economic capital, is distributed within the country. But Nigeria has ambitious plans to bridge the digital divide and is implementing a set of reforms to attract more private sector investment in this space. The government also aims to create two million digital jobs for Nigeria’s youth by 2025—a key objective for a country home to one of the largest youth populations in the world.

One inspiring conversation I had was with technopreneur Amal Hassan , the founder and CEO of Outsource Global . Amal has devoted her career to training and employing young people in the digital sector —and women in particular— and her work is making a real difference in Nigeria and beyond.???

Betting on regional integration?

Nigeria plays a major role in promoting regional integration. While in Abuja, I participated in a roundtable with ministers of finance from West and Central Africa where energy access and digitalization took center stage. On the energy side, we estimate that with about $30 billion in IDA support (our fund for low-income countries), the World Bank Group could facilitate access to about 300 million people across Africa by 2030, including 100 million in the West and Central region.

On the digital economy front, through regional projects such as the West Africa Regional Communications Infrastructure project, we have managed to increase the reach of broadband networks and reduce the cost of communications across 16 countries. In my opening remarks, I made it clear that we can and must do more. I also took the opportunity to thank the World Bank Governors for the role they play in advocating for the biggest IDA replenishment ever. The voice of Africa must be heard loud and clear.??

Soccer power?

Visiting a country during a major sports event, when the entire nation —more than 220 million people in the case of Nigeria— is rallying behind their home team, can be incredibly exciting. And what a thrill it was to watch the Super Eagles, Nigeria’s football team, win the semifinal of the Africa Cup of Nations (AFCON) while I was in Abuja! After a full day of meetings with government officials, the game was on TV as I gathered with a few colleagues, including a South African who was gracious in defeat after an electrifying match that ended in a penalty shootout.

But what I also witnessed in Abuja was a display of soccer diplomacy. During a gathering of ministers of finance from West Africa, when the minister of finance from Nigeria invited his Ivorian counterpart to sit next to him– knowing that C?te d’Ivoire and Nigeria will face each other for the final of AFCON—, the minister from C?te d’Ivoire pointed out jokingly that the victory of a West African team on Sunday would be a win for the entire region. This lighthearted comment truly showcased the unifying power of soccer.??

Today, I will watch the final of the AFCON with great pleasure but won’t pick any winner. Instead, I will be rooting for Team Africa.

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