In a direct call to Nigeria’s government, the World Bank is urging the federal authorities to “reduce high import tariffs and lift certain import bans” as a fast-track fix to ease soaring prices and blunt rising poverty.
The Bank’s Country Director for Nigeria explained that inflation remains “dangerously high,” eroding the purchasing power of millions of households especially the poor with food inflation alone hovering around 20%.
He added that since many of the affected goods are essential items consumed by lower-income Nigerians, lowering tariffs and removing bans could bring quick relief. “One way of lowering inflation quickly is to reduce some of these tariffs and take away some of these import bans,” he said also noting that doing so would align Nigeria’s trade policy with obligations under the ECOWAS common external tariff.
Beyond immediate price relief, the Bank warned that if inflation persists unchecked, poverty may continue to rise through 2025 and possibly into 2026, undermining ongoing reform efforts and putting additional strain on vulnerable households.
In addition, the Bank stressed that stabilising exchange rates depends less on artificial fixes and more on expanding exports and boosting foreign direct investment, as part of a broader push toward economic growth and revenue diversification.
Cutting import tariffs could lower consumer and production costs, easing inflationary pressure and supporting consumer spending. It may also improve supply-chain linkages, reduce cost-push inflation, and bolster manufacturing competitiveness, potentially attracting foreign investment and helping revive growth beyond just temporary price relief.
