The World Bank says it is realigning its Country Partnership Strategy (CPS) for Nigeria to support the rebuilding of the North East and other priorities of the Federal Government.

Mr. Khwima Nthara, the Lead Economist and Programme Leader of the World Bank Country Office in Nigeria, stated this in a chat with newsmen in Abuja on Tuesday.

Nthara said that the strategy, which was inaugurated in April, was a four-year support framework designed to aid the government’s key development programmes.

“When President Muhammadu Buhari went to Washington, he asked the President of the World Bank for support to the North East and you heard the announcements that were made around that visit.

“So right now, one of the areas that we are also going to focus on as we align our support to the priorities of the government is indeed on our support to the North East in terms of helping with the recovery and reconstruction going forward.

“But also there would be other areas that we would be in discussion with the government. We don't yet have a cabinet as you know.

“Once the cabinet is in place there will be further discussions with the policy makers of each ministry in terms of how we support the government's priorities going forward.

“So, there has been no change in position in terms of the World Bank's support to Nigeria in terms of amount except that we need to align our support to the priorities of the new government.”

Nthara stated that the country’s economic growth over the years had not impacted significantly on the people’s living standard largely because it occurred in sectors that were not labour intensive.

He cited the agricultural sector, which employs nearly 89 per cent of the population, saying that it had been growing at between two and six per cent since 2011.

According to him, the bulk of the country's Gross Domestic Product is coming from the services sector where not many Nigerians are employed compared with agriculture.

“For growth to translate into a reduction in poverty you have to look at two main channels. The first is to what extent is that growth happening in those sectors that are also labour intensive?

“It is only when people earn incomes that their poverty can be reduced. So, if growth is taking place in those sectors that employ more people, then obviously they will benefit more in terms of incomes they earn and that should translate into a reduction in poverty.

“So, what has been seen over the past couple of years is that perhaps growth has taken place in some of those sectors that are not very labour intensive.

“The second point is that what is the government doing to ensure that it uses public policy in whatever form to translate that growth into a reduction in poverty?

“For example, supposing growth is taking place in a sector such as oil where not many are employed, and yet that growth is generating higher revenues, how is the government utilising those revenues to ensure that either it empowers more people to have the skills and access to jobs or to deal with the bottlenecks that the economy is facing to create jobs or ensure that growth takes place in labour intensive sectors?

“In Nigeria, it has been said that agriculture is employing more than half of the labour force and yet productivity has been very low.

“In other words jobs in that sector have not been well remunerative. So to what extent do you make sure that as the economy grows, productivity in that sector also grows?

“One of the structural measures should also include improving productivity in agriculture, because yes you may have more people employed in that sector, but they are not earning as much.”

The World Bank programmes leader identified power and education as two critical sectors that the government should prioritise to improve the living conditions of the people.

Nthara applauded the Single Treasury Account (TSA) policy of the Buhari government, saying it would give the government a clear picture of its position at all times.

“The principle of the TSA is very simple, that you want to have a more comprehensive view of your cash position as a government.

“You have heard that they had to close thousands of accounts where cash would just lay idle, while another part of government would be needing cash and the government would be borrowing from the Central Bank and other sources when the cash lie in some accounts of MDAs.

“So, what the TSA does is to consolidate the various cash positions into one single treasury account so that the government is able to know its cash position at any point in time, and only allocate funds to those agencies that need it.

“So, this will reduce the need for government to go to ways and means to finance MDAs that are running low on cash.

“So, the principle is a good one. Nigeria is only implementing it now, but most countries have already been implementing it and it’s been very successful.” (NAN)

*Photo shows World Bank Logo.

Update news