Nigeria Must Reduce Government Borrowing From CBN – World Bank

The World Bank Group has come out to urge Nigeria to reduce government’s borrowing from the Central Bank if it wants to decrease the inflationary pressure on the economy.

World Bank’s Lead Economist for Nigeria, Alex Sienaert recently revealed this during an economic review session at the Lagos Business School, and Nigerians have been reacting.

According to him, even if he would commend the government over its recent economic reforms, these reforms would have to be sustained for the economy to recover from present shocks in the near future.

Alex added that a variety of solutions would have to be devised in order to mobilise more revenue in a way that spending would be increased to tackle the real priorities in Nigeria.

His words, “The whole agenda of tackling inflation is obviously a huge one. Some ideas include reducing subsidised CBN lending to medium and large firms and the government borrowing from CBN.”

“All of these things increase the money supply and reducing that will be helpful to reduce inflation, and then replacing imports with FX restrictions with tariffs.”