World Bank, IMF advocate for coordinated inflation control in Nigeria 

Nigeria’s inflation rate increased to 34.8 percent in December, up from 33.6 percent in November.

During a panel session, World Bank’s Senior Economist for Nigeria, Sameer Matta, emphasized the importance of the CBN’s focus on curbing inflation. “It is critical to stay the course on inflation control. The central bank must continue to ensure that inflation is kept in check,” Matta stated.

He highlighted the need for improvements on the supply side, including enhancing agricultural yields and strengthening the link between rural and urban areas. He also suggested that trade policies should be reviewed to target specific sectors and adjust tariffs accordingly.

Matta pointed out that the cost of not implementing reforms is significant, with fuel and foreign exchange subsidies accounting for two percent each of Nigeria’s gross domestic product (GDP).

“This amounts to five percent of GDP, which is extremely high,” he noted.

He likened the necessary reforms to tough medical decisions, emphasizing the importance of continuing social protection measures and accelerating cash transfer programs to support the most vulnerable.

Christian Ebeke, Nigeria’s country representative at the International Monetary Fund (IMF), reiterated the need for coordination between fiscal and monetary authorities to effectively combat inflation.

He commended the CBN and fiscal authorities for their efforts to curb deficit monetization and improve financial conditions while emphasizing the importance of transparent liability management and the benefits of securitization in spreading out maturities.

Naijaonpoint had reported that the headline inflation rate in Nigeria experienced a slight increase, reaching 34.80% in December 2024, as reported by the National Bureau of Statistics.

This year-on-year increase indicates a significant rise in the cost of living compared to the same month in the previous year.