THE Director-General of the World Trade Organisation (WTO), Ngozi Okonjo-Iweala, has urged the Federal Government to establish social safety nets for poor Nigerians affected by President Bola Tinubu’s economic reforms.
Okonjo-Iweala made the call on Thursday, August 14, after a meeting with President Bola Tinubu at the Aso Villa in Abuja.
The Nigerian former Minister of Finance and Coordinating Minister of the Economy, however, noted that the president’s reforms were necessary but stressed that the government must put social safety nets in place for poor citizens to cope with the economic hardship occasioned by the reforms.
The ICIR reports that Tinubu had made petrol subsidy removal and the unification of the foreign exchange rates unification as some of the key policies of his administration.
Despite being vital, these policies have pushed more Nigerians below the poverty line.
Tinubu, who launched a string of economic reforms when he assumed office in May 2023, has come under heavy criticism for over two years, as many Nigerians attribute soaring food inflation and the skyrocketing cost of living to his removal of petrol subsidy and the unification of foreign exchange windows.
Consequently, Nigerians have faced over 200 per cent surge in fuel prices, with inflation hitting an all-time high and household spending rising astronomically.
Transportation and food costs have also skyrocketed, leaving millions struggling to make ends meet.
Commenting further on the government’s reforms, Okonjo-Iweala said, “We think that the president and his team have worked hard to stabilise the economy. You cannot improve an economy unless it is stable. So, he has to be given the credit for the stability of the economy. The reforms have been in the right direction.
“What is needed next is growth; we now need to grow the economy, and we need to put in social safety nets so that people who are feeling the pinch of the reforms can also have some support to weather the hardship. That’s the next step.”
Tinubu’s meeting with Okonjo-Iweala came two weeks before the expiration of her first term as WTO boss on August 31, and the commencement of her second term on September 1.
The renowned economist and global finance expert made history in 2021 as the first African and first woman to lead the 164-nation-member WTO.
The WTO boss, who was in the company of Trade Minister, Jumoke Oduwole, also briefed the president on the progress made on the Women’s Exporters’ Fund for the digital economy.
Okonjo-Iweala said, “We came to brief him about something very joyful that we did today with the help of the First Lady.
“We launched a Women’s Exporters’ Fund for the digital economy. This is a fund that is jointly managed by the World Trade Organisation and the International Trade Centre (ITC) and supports women to weather the storms of the economy and create jobs for themselves.
“It is part of the thinking of the social safety net and what we can do to support Nigerian women to contribute more to the economy and themselves.
“Nigeria competed and won, one of four countries that won globally to be part of this initiative.
“We have 67,000 Nigerian women who applied for this, and 146 of them won, and they are going to have money disbursed directly to them.
The ICIR reports that 16 beneficiaries won the “Booster Track” targeted at those who already have businesses. Their businesses would be scaled up. They would receive technical and business support from the WTO and the ITC for 18 months.
“Another 100 would get $5,000 each to start and strengthen their businesses, with 12-month reforms,”she added.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.