Okonjo-Iweala Promises to Upgrade Non-oil Sector as She Leaves W/Bank
Dr. Ngozi Okonjo-Iweala departs the World Bank as managing director last Friday and said her biggest challenge as Nigeria’s new economic chief will be to develop an economy that is less dependent on oil and gas. Okonjo-Iweala, who will take up the role of Nigeria’s Coordinating Minister for the Economy and Minister of Finance next week, has been a steady hand at the world’s largest development institution since 2007, where she has had unique insights into the growing role of developing nations in the global economy. Nigeria is one of Africa’s most dynamic economies but it has enormous problems, including an over-reliance on commodity exports, mismanagement, low investment and a history of powerful vested interests.
“Nigeria has to make some fundamental changes, it has to really diversify its economy,”Okonjo-Iweala told Reuters in an interview on Thursday. “The time is now because investors are interested in the country,” she said. She said the country’s manufacturing sector had lost competitiveness due to increasing power shortages and bureaucratic hurdles, while its agriculture and services sectors had a lot more room to grow, and a flourishing entertainment industry held great potential. One lesson Okonjo-Iweala takes with her is that consistent policies and a stable political environment are essential for any economy to flourish. “We have to show policy consistency in all kinds of ways. It builds trust in the economy, it builds resilience and that helps enormously,” Okonjo-Iweala said. It is the second time in eight years that Okonjo-Iweala has left a World Bank job to return to Nigeria to help transform the huge oil-rich nation’s economy. In 2003 she shook up the country finances, fired corrupt officials, boosted transparency and negotiating the cancellation of nearly two-thirds of Nigeria’s $30 billion Paris club debt.
“Why am I going back? I ask myself that question too. I am passionate about my country and if you have skills and your country calls on you to come and help, at the end of the day it’s very difficult to say no,” said Okonjo-Iweala adding that she was encouraged by President Goodluck Jonathan’s political commitment to reform Nigeria.
“Nigeria has to make some fundamental changes, it has to really diversify its economy,”Okonjo-Iweala told Reuters in an interview on Thursday. “The time is now because investors are interested in the country,” she said. She said the country’s manufacturing sector had lost competitiveness due to increasing power shortages and bureaucratic hurdles, while its agriculture and services sectors had a lot more room to grow, and a flourishing entertainment industry held great potential. One lesson Okonjo-Iweala takes with her is that consistent policies and a stable political environment are essential for any economy to flourish. “We have to show policy consistency in all kinds of ways. It builds trust in the economy, it builds resilience and that helps enormously,” Okonjo-Iweala said. It is the second time in eight years that Okonjo-Iweala has left a World Bank job to return to Nigeria to help transform the huge oil-rich nation’s economy. In 2003 she shook up the country finances, fired corrupt officials, boosted transparency and negotiating the cancellation of nearly two-thirds of Nigeria’s $30 billion Paris club debt.
“Why am I going back? I ask myself that question too. I am passionate about my country and if you have skills and your country calls on you to come and help, at the end of the day it’s very difficult to say no,” said Okonjo-Iweala adding that she was encouraged by President Goodluck Jonathan’s political commitment to reform Nigeria.
