World Bank Flags Nigeria’s Governance Woes Despite Modest Policy Gains

The World Bank has stressed the need for the Nigerian government as well as countries in Sub Saharan Africa to improve the delivery of essential services to promote inclusive, sustainable growth.

This is as Nigeria continues to trail in governance and public sector accountability, despite a slight improvement in its institutional and policy ratings.

In the World Bank’s latest Country Policy and Institutional Assessment (CPIA), Nigeria’s score had edged up slightly, reflecting improvements in macroeconomic stability and social inclusion. However, persistent weaknesses in governance indicators weighed down the overall performance.

According to the report, median CPIA scores in Sub-Saharan Africa remained unchanged at 3.1 for the third consecutive year in 2024. Nigeria’s score remained below average, largely due to the country’s long-standing governance issues and public sector inefficiencies.

The Bank observed that public debt across IDA countries, including Nigeria, declined moderately in 2024. The median debt-to-GDP ratio fell to 54.7 per cent from 57 per cent in 2023, helped by fiscal reforms and improved debt management strategies.

However, the country underperformed in public sector management and institutions, which covers key governance areas such as transparency, accountability, judicial independence, and efficiency of public administration, where it scored lower than the regional average..

The Bank highlighted the widening gap in governance between Sub-Saharan Africa and other IDA regions, warning that the governance weaknesses in large economies like Nigeria risk undermining broader development goals.

“More than half of the countries in Sub-Saharan Africa have experienced stagnation or decline in their governance scores since 2015. Nigeria’s challenges in curbing corruption, enforcing rule of law, and ensuring fiscal accountability reflect this pattern,” the report stated.

The CPIA report underscores that meeting the needs of African citizens will require mobilizing the government to provide services amidst limited external financing. The report serves as a vital guide for policymakers and international investors, identifying specific reform actions to support effective public service delivery and foster a more resilient and prosperous future for Sub-Saharan Africa.

Commenting on the report, World Bank Chief Economist for Africa, Andrew Dabalen, said “confidence in a government’s ability to efficiently transform public resources into essential services is fundamental to fostering a shared purpose with citizens and improving trust.

“Populations across Africa are clearly asking for more from their leaders to enable them to realize their aspirations. Our CPIA Africa report underscores the urgent need for transparent management of public resources and effective delivery of quality services to address growing dissatisfaction and enable citizens to reach their full potential.”

Despite these challenges, the report noted some positive developments. Many countries have shown improved fiscal discipline, tackling high wage bills and fuel subsidies, and making progress in debt consolidation. Efforts to implement trade facilitation agreements, leverage digital technologies, and strengthen financial sector regulation are also underway. The report also highlights progress in empowering adolescent girls through legal and policy reforms and strengthening of social protection systems.

“While some countries have made commendable strides in fiscal prudence and digital transformation, issues of weak governance, limited transparency, and insufficient implementation capacity continue to undermine efforts to deliver essential services. Addressing these fundamental challenges is not just about economic growth; it’s about showing people that governments can work for them to help create a better path for the future,” added Nicholas Woolley, the CPIA report’s lead author.