The World Bank has urged the Federal Government to urgently reduce import tariffs and lift restrictions on some banned goods in order to slow down the continuous rise in the cost of goods and services across the country.
The advice came from the World Bank Country Director for Nigeria, Mathew Verghis, who said that cutting these tariffs would help ease inflation and eventually reduce the level of poverty. Speaking in a cable television interview monitored in Lagos, Verghis said rising inflation is severely weakening the purchasing power of millions of Nigerians.
In its Consumer Price Index (CPI) Report for October, the National Bureau of Statistics (NBS) placed the inflation rate at 16.05 per cent, a drop from 18.02 per cent in September. According to the NBS, this was the seventh straight month of decline and the lowest figure recorded in three years. The report was released on November 17.
Despite the improvement, Verghis said the World Bank’s projections indicate that poverty levels in Nigeria may continue to rise throughout 2025 and possibly into 2026 if inflation is not tackled with stronger policy measures. He explained that the main problem is food inflation, which remains close to 20 per cent and continues to eat into household income, especially for the poorest families.
Verghis encouraged Nigeria to continue implementing its ongoing economic reforms, stressing that countries like India and China only achieved stability after decades of consistent reform efforts. He noted that Nigeria currently has high import tariffs and, in some cases, outright import bans on goods commonly consumed by the poor. Reducing these tariffs and removing some bans, he said, would be one of the fastest ways to bring inflation down.
Commenting on the value of the naira, Verghis said the best approach to ensuring a stable currency is to grow export earnings and attract more foreign direct investment. He said a stable exchange rate helps businesses plan better and supports the wider economy, adding that boosting growth remains the primary objective.
The director also praised Nigeria for making progress in diversifying government revenue. He explained that the country is now far less dependent on oil revenue than in previous years, largely due to a more realistic exchange rate and the removal of petrol subsidies. According to him, stronger non-oil revenue will create more room for investment in infrastructure and human development.
He also noted that Nigeria’s borrowing outlook has improved, citing the country’s relatively moderate debt-to-GDP ratio. However, he warned that any borrowed funds must be used wisely and channelled into projects that support long-term development.
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