The World Bank Group has advised Nigeria to reduce the government’s borrowing from the Central Bank as part of its efforts to address inflationary pressure on the economy.

During an economic review session at the Lagos Business School, the World Bank’s Lead Economist for Nigeria, Alex Sienaert, praised the government’s recent economic reforms but emphasized the need for their sustained implementation to achieve economic recovery and substantial growth.

Sienaert highlighted various measures that could aid in curbing inflation, including reducing subsidized CBN lending to medium and large firms and the government’s borrowing from the Central Bank.

He also suggested replacing imports with foreign exchange restrictions through tariffs.

The Federal Government’s plan to disburse N8,000 as palliatives following the removal of fuel subsidy was discussed.

Sienaert believed this cash transfer could increase the earnings and income of about 50 percent of Nigerians by 10 percent, providing significant support to needy households.

However, some economists and organized labor expressed skepticism about the plan, arguing that the amount might not have a substantial impact considering the rising costs of goods and services.