Abuja: Dr. Matthew Verghis, Country Director of the World Bank in Nigeria, has called on the Federal Government to address inflation, particularly focusing on food inflation, to bridge the gap between policy and the populace. Verghis highlighted these concerns while discussing the World Bank's latest Nigeria Development Update (NDU) report titled 'From Policy to People: Bringing the Reforms Gains Home' in Abuja.
According to News Agency of Nigeria, Verghis stated that Nigeria has made considerable progress in stabilizing its economy. He noted that growth has increased, revenues have risen, debt indicators are improving, the foreign exchange market is becoming more stable, reserves are rising, and inflation is beginning to trend downward. Despite these positive developments, Verghis pointed out that many Nigerians continue to struggle with reduced purchasing power and that poverty remains a significant issue, with an estimated 139 million Nigerians currently living in poverty.
Verghis emphasized that while the current data-driven monetary policy, complemented by a non-expansionary fiscal policy, is suitable for controlling inflation, it has not been sufficient. He explained that inflation is decreasing but not at a fast enough pace. To address this, Verghis suggested that monetary and fiscal policies should be supported by structural reforms specifically aimed at reducing food inflation, which is driven by supply and market inefficiencies.
The NDU report outlines a three-pronged strategy to translate reform gains into immediate improvements in the living conditions of Nigerians. The first strategy focuses on reducing inflation, particularly food inflation. The second recommendation urges the government to utilize public resources more effectively, ensuring that spending leads to tangible development outcomes that benefit the people. The third strategy recommends expanding the safety net by providing support to the poorest and most vulnerable members of society, emphasizing practical steps that can translate macroeconomic stability into improved livelihoods.
Dr. Samer Matta, Acting World Bank Lead Economist for Nigeria, provided an overview of the report, indicating that food prices are rising, particularly for items consumed by the poor. Matta suggested removing trade barriers on food and addressing domestic structural constraints to tackle this issue. He also stressed the importance of continuously updating Nigeria's social registry to effectively target the poor and vulnerable, while also advocating for domestic financing for social safety nets.
The News Agency of Nigeria reports that the NDU is a biannual World Bank report that examines economic and social developments in Nigeria, offering an in-depth analysis of the country's medium-term development challenges.