The World Bank has urged the Federal Government to immediately reduce import tariffs and lift restrictions on certain banned goods to curb rising prices across the country.
According to the World Bank Country Director for Nigeria, Mathew Verghis, these steps would help lower inflation and ease the growing poverty rate.
Speaking during a cable television interview monitored in Lagos, Verghis warned that high inflation continues to weaken the purchasing power of millions of Nigerians.
The National Bureau of Statistics (NBS), in its Consumer Price Index (CPI) Report for October, recorded inflation at 16.05 per cent—down from 18.02 per cent in September. This marked the seventh consecutive month of decline and the lowest inflation rate in three years. The report was released on November 17.
Despite this moderation, Verghis stated that World Bank projections indicate Nigeria’s poverty rate may continue rising into 2025 and possibly 2026 unless inflation is tackled aggressively.
He said the major driver was food inflation, which remains around 20 per cent, eroding household income and pushing more families into hardship.
Verghis advised Nigeria to maintain its current economic reforms, noting that countries like India and China achieved long-term stability through consistent reform efforts over many years.
He added that high tariffs and import bans on goods largely consumed by the poor worsen inflation. Reducing these tariffs and removing certain bans, he said, would quickly bring down prices.
On the naira, Verghis emphasised that boosting export earnings is the most effective way to strengthen the currency.
He explained that a stable exchange rate encourages business planning and supports economic growth. Increasing foreign direct investment, he added, would also help stabilise the naira.
Verghis commended Nigeria’s progress in revenue diversification, noting that the country is becoming less dependent on oil revenues due to a more realistic exchange rate and the removal of petrol subsidies. Higher non-oil revenues, he said, will enable greater investment in infrastructure and human capital.
He further stated that Nigeria’s debt-to-GDP ratio remains reasonably moderate, signalling an improved borrowing outlook, but warned that borrowed funds must be used prudently.
