Multilateral body, the World Bank, has insisted that Nigeria’s economy requires more measures despite recent policies around currency reforms and the removal of petrol subsidies.

The Bank says the country must control inflation and stabilise its foreign exchange market to boost growth in Africa’s largest economy.

The inflation rate has continued its upward movement for the tenth straight month in Nigeria, according to the latest data released by the National Bureau of Statistics. Nigeria’s inflation rate surged to 27.33% in October. It was a 0.61 percentage point increase from the 26.72% that was recorded in September.

During a presentation in Abuja, the capital, World Bank lead economist for Nigeria, Alex Sienaert, stated that “several complementary reforms are needed to support Nigeria’s structural agenda and overall gain in competitiveness and economic diversification.”

According to him, Nigeria’s economy would expand at an average annual rate of 3.5% in 2023–2026 thanks to the reforms, which would be 0.5% faster than it would have been in the absence of the changes.

Even after lifting the forex ban on 43 items, the government still needed to improve infrastructure, implement clear and consistent trade policies, and remove any remaining import restrictions, according to Siernaert.

She added that, as part of several unconventional measures taken by former central bank governor Godwin Emefiele, Nigeria’s central bank should tighten monetary policy, increase market confidence around free foreign exchange pricing, phase out “ways and means” advances to the government, and end its development finance initiatives.

Some observers have noted that the continued rise in inflation adds to the pressure on the new central bank governor, Olayemi Cardoso, to raise interest rates when the monetary policy committee meets for the first time since his appointment.