Cut import tariffs, lift bans to curb Nigeria’s inflation — World Bank

The World Bank has advised the Federal Government to urgently reduce import tariffs and remove bans on selected items as part of measures to tackle rising inflation and ease pressure on Nigerian households.

World Bank Country Director for Nigeria, Mathew Verghis, speaking on a monitored TV programme, said high inflation continues to weaken the purchasing power of millions, warning that poverty levels may keep rising through 2025 and possibly into 2026 unless the issue is decisively addressed.

Although the National Bureau of Statistics (NBS) reported a drop in inflation to 16.05% in October — the seventh consecutive monthly decline and the lowest in three years — Verghis noted that food inflation remains around 20%, posing a major threat to poor households.

He argued that lowering tariffs and lifting import bans on essential goods would help bring down prices more quickly, echoing examples from countries like India and China where long-term reforms strengthened economic stability.

On stabilising the naira, Verghis stressed the need to grow export earnings and attract foreign investment.

He added that Nigeria’s reduced dependence on oil revenue — aided by a more realistic exchange rate and subsidy removal — provides room to boost spending on infrastructure and human capital.

While describing Nigeria’s debt-to-GDP ratio as moderate, he urged the government to ensure borrowed funds are used judiciously.