Reforms: World Bank Hails Nigeria as Pacesetter, Seeks Stronger Oversight

• Backs state-led projects, urges lawmakers to tighten accountability 

•IEA, IMF, World Bank form joint taskforce to tackle global energy shock

Nume Ekeghe in Lagos and Sunday Aborisade in Abuja

The World Bank has declared Nigeria an emerging model for economic reform among developing nations, reaffirming its commitment to back the country’s recovery efforts while calling for stronger legislative oversight to ensure accountability and impact.

The endorsement came as the Bank highlighted steady progress in Nigeria’s reform agenda, noting that recent policy measures are beginning to yield positive outcomes and positioning the country as a reference point for others pursuing similar economic transitions.

Speaking during a meeting with the Senate Committee on Capital Market in Abuja yesterday , the World Bank Country Director for Nigeria, Mathew Verghis, said the institution remains fully aligned with Nigeria’s reform trajectory and is ready to deepen its support across key sectors.

He revealed the Bank’s Managing Director recently visited Nigeria and commended the pace and direction of reforms, describing the country as a growing example for nations seeking to stabilise and reposition their economies.

Verghis, however, stressed that sustaining the gains of these reforms would depend significantly on effective parliamentary oversight, particularly for projects funded by development partners.

According to him, legislative scrutiny is essential to ensuring transparency, proper utilisation of funds and the overall success of intervention programmes. He urged lawmakers to apply oversight constructively, noting that it should strengthen implementation rather than hinder progress.

“Legislative oversight remains a critical pillar for ensuring accountability and effectiveness, especially in projects supported by the World Bank,” he said.

The Country Director also disclosed that the Bank has, in recent years, adopted a decentralised implementation approach in Nigeria, with a growing number of projects now executed at the state level.

He explained that while the federal government, through the Ministry of Finance, remains the borrower responsible for repayments, state governments are increasingly driving project execution.

This shift, he said, aligns with Nigeria’s federal structure and has improved delivery outcomes by bringing implementation closer to the people. Verghis said: “Over the past four to five years, we have increasingly moved implementation to the states. This has enhanced efficiency, but participation is based on clearly defined eligibility criteria,” he added.

He noted that only states that meet these benchmarks can access World Bank funding, while others may opt out, a system designed to promote accountability and performance.

On sectoral priorities, Verghis highlighted women’s empowerment as a central pillar of the Bank’s development strategy in Nigeria, describing it as crucial to achieving sustainable economic growth.

He disclosed that several ongoing programmes are aimed at boosting women’s participation in the economy, alongside a forthcoming early childhood development initiative focused on maternal health, child welfare, early education and improved access to learning opportunities.

The bank also expressed readiness to strengthen collaboration with the National Assembly on environmental project oversight, calling for further engagement to address existing challenges and identify practical solutions.

“We would welcome a follow-up discussion to better understand the challenges and how we can address them,” he said.

In his remarks, Chairman of the Senate Committee on Capital Market, Osita Izunaso, welcomed the World Bank delegation and reiterated the committee’s commitment to effective oversight of development programmes.

He announced plans to convene a technical session in the third week of April to enhance lawmakers’ understanding of World Bank-supported initiatives and clarify their roles in ensuring successful implementation.

According to him, the session would provide an opportunity for detailed briefings, particularly for first-time legislators who require orientation on the workings of international development programmes.

“During this session, a representative will walk us through the programme and clearly explain the expected role of parliamentarians in World Bank-supported activities,” Izunaso said.

Meanwhile, heads of the International Energy Agency (IEA),  IMF, and World Bank Group have agreed to establish a joint coordination group aimed at strengthening the global response to the escalating energy and economic fallout from the war in the Middle East.

In a joint statement, the institutions warned that the conflict has triggered one of the most severe supply disruptions in the history of global energy markets, with far-reaching and uneven consequences across economies. They noted that the shock is already reverberating through higher oil, gas and fertiliser prices, while also stoking concerns over rising food costs and inflationary pressures globally.

“ The Heads of the International Energy Agency, International Monetary Fund, and World Bank Group have agreed to form a coordination group to maximize their institutions’ response to the energy and economic impacts of the war in the Middle East.

“The Middle East war has caused major disruptions to lives and livelihoods in the region and triggered one of the largest supply shortages in global energy market history. The impact is substantial, global, and highly asymmetric, disproportionately affecting energy importers, in particular low-income countries.

“It is already transmitted through higher oil, gas and fertilisers prices, and is triggering concerns about food prices as well. Global supply chains including of helium, phosphate, aluminium, and other commodities are affected, as is tourism due to flight disruptions at key Gulf hubs. The resulting market volatility, weakening of currencies in emerging economies, and concerns about inflation expectations raise the prospect of tighter monetary stances and weaker growth.”

“At these times of high uncertainty, it is paramount that our institutions join forces to monitor developments, align analysis, and coordinate support to policymakers to navigate this crisis. This is especially the case for countries that are most exposed to the downstream impacts from the war and those confronting more limited policy space and higher levels of debt,” the global financial institutions said.

They stated that to drive a more coordinated response, they have agreed to establish a joint group that will evaluate the scale of the crisis across countries and regions through shared data on energy prices and markets, trade flows, fiscal and external pressures, inflation trends, export restrictions on key commodities, and supply chain disruptions.

The group will also align response mechanisms, including targeted policy guidance, assessment of financing needs, provision of financial support particularly concessional funding and the deployment of appropriate risk mitigation tools.

In addition, it will mobilise key stakeholders across multilateral, regional, and bilateral institutions to ensure timely, coordinated, and effective support for countries most impacted by the crisis.

“The group will work with, and draw on, other international organisations’ expertise as needed. We are committed to working together to safeguard global economic and financial stability, strengthen energy security, and support affected countries and people on their path to sustained recovery, growth, and job creation through reforms,” they explained.