The World Bank has advised the Nigerian government to urgently reduce high import tariffs and lift certain import bans as part of immediate measures to slow inflation and ease the financial pressure on households. The recommendation was made by the World Bank Country Director for Nigeria, Mathew Verghis, during an interview with Arise TV on Thursday, where he warned that inflation remains “dangerously high” and continues to weaken the purchasing power of millions.
According to Verghis, the Bank’s projections show that poverty levels could continue rising through 2025 and potentially into 2026 if inflation is not firmly brought under control. He noted that persistently elevated food inflation—hovering around 20 percent—is a major driver of declining household welfare.
While acknowledging the importance of Nigeria’s broader economic reforms, Verghis emphasised that some policy decisions could offer quicker relief. He pointed to high tariffs and import restrictions affecting goods commonly consumed by low-income households. Reducing these barriers, he said, would align with ECOWAS commitments and help lower inflation more rapidly.
Turning to Nigeria’s volatile exchange rate, Verghis discouraged attempts at artificial stabilisation. He argued that long-term stability depends on strengthening exports and attracting sustained foreign direct investment. A market-reflective exchange rate, he added, is essential for building investor confidence and enabling businesses to plan effectively. “The primary objective is to get growth going,” he said, noting that exchange-rate stability should serve that broader goal.
Verghis also highlighted progress in revenue diversification, stating that Nigeria is now significantly less reliant on oil income than in previous years. He attributed this shift to more realistic exchange-rate management and the removal of petrol subsidies, which together have boosted non-oil revenues. With improved revenue performance, he noted that the country’s debt outlook is gradually strengthening, with the debt-to-revenue ratio declining for the first time in years.
However, he cautioned that responsible debt utilisation remains critical. Borrowing, he said, must translate into productive investments in order to avoid future fiscal strain.
The World Bank’s remarks come amid renewed scrutiny of Nigeria’s social protection framework. In its latest report, The State of Social Safety Nets in Nigeria, the institution revealed that although 56 percent of programme beneficiaries are poor, only 44 percent of total benefits reach poor households—highlighting gaps in targeting and delivery.