The World Bank has called on the Federal Government of Nigeria to lower high import tariffs and review existing import bans as part of urgent measures to tackle the country’s persistent inflation and ease the pressure on households struggling with rising living costs.
Speaking during a national broadcast, the World Bank Country Director for Nigeria, Mathew Verghis, warned that elevated inflation, driven largely by surging food prices, is rapidly eroding purchasing power and worsening poverty levels across the country.
“Nigeria has high tariffs and, in some cases, import bans on goods consumed by the poor,” Verghis said. “One way of lowering inflation quickly is to reduce some of these tariffs and take away some of these import bans.”
According to the Bank’s 2025 economic assessment, easing Nigeria’s rigid trade barriers is critical to addressing supply shortages and slowing the pace of price increases. The recommendations include:
- Removing import bans on essential goods, especially food items and agricultural inputs.
- Reducing high import tariffs that restrict supply and elevate consumer prices.
- Restoring market competition to allow more affordable products into the country.
- Improving customs revenue and trade flows, taking advantage of Nigeria’s now more competitive exchange-rate environment.
The Bank argues that Nigeria’s protectionist policies, originally intended to support local industries, have inadvertently worsened inflation by limiting supply and driving up the cost of basic goods.
Nigeria continues to grapple with high double-digit inflation, with food inflation remaining the most severe. Vulnerable households bear the greatest burden, as essential goods become increasingly unaffordable.
The World Bank notes that Nigeria’s tariff regime remains among the highest in sub-Saharan Africa. While the aim was to protect domestic production, the restrictions have often resulted in:
- Higher retail prices
- Lower product availability
- Reduced consumer purchasing power
- Increased poverty levels
Analysts say that easing these trade barriers could help stabilise prices more quickly than monetary tightening alone.
The recommendations appear to be gaining traction within government circles. Nigeria’s Finance Minister and Coordinating Minister of the Economy, Wale Edun, recently disclosed that the Federal Government is preparing to reassess tariffs and import bans as part of the next phase of its economic reforms aimed at boosting productivity.
If implemented, the reforms could: Mitigate inflationary pressures; Improve the availability of essential goods; Strengthen household welfare; Support broader economic recovery.
