The World Bank Group and the International Monetary Fund (IMF) have urged the Central Bank of Nigeria (CBN) to adopt orthodox measures to address the country’s inflation, which stood at 34.80% in December 2024.
Speaking at the launch of the 2025 Macroeconomic Outlook of the Nigerian Economic Summit Group, themed ‘Stabilisation in Transition: Rethinking Reform Strategies for 2025 and Beyond,’ the Senior Economist for Nigeria at the World Bank, Dr. Sameer Matta, emphasized the need for sustained focus on inflation control. Matta highlighted improving agricultural yields, enhancing rural-urban connectivity, and adjusting trade tariffs as potential measures.
Dr. Christian Ebeke, the IMF’s Nigeria Country Representative, stressed the importance of coordination between fiscal and monetary authorities to bring inflation down. He praised recent efforts by the CBN and fiscal authorities to limit deficit financing and reduce money supply, describing these as critical steps toward financial stability.
The CBN under Governor Olayemi Cardoso has raised interest rates from 18.75% at the end of 2023 to 27.50% in November 2024 to combat inflation. While the apex bank sees progress, experts such as the Centre for Promotion of Private Enterprise have called for a pause to assess the impact of these measures.