Turning the Corner: A New Compact between Nigeria's People and State
CBN ALSO LIFTED FX ACCESS RESTRICTIONS FOR IMPORTING 43 ITEMS,
LIKELY IMPROVING THE OVERALL WELFARE OF NIGERIANS
Import restrictions had adverse effects on the economy
Removing import restrictions could lift 1.3 million people
(around 0.6 percent of the population) out of poverty
$
R
FX MARKET SEGEMENTATION: Traders bypassed
import and FX restrictions, persistently importing
restricted products into Nigeria. They often tapped
into the parallel market for FX, pushing demand into
the parallel market and fragmenting the FX market
HIGHER PRICES: Eliminating both FX restrictions on
imports and import bans would lead to an estimated
4.7 percent decrease in prices of the goods affected
TRADE EVASION: FX restrictions on imports had
directly resulted in an 18.1 percent increase in trade
evasion
LOWER FISCAL REVENUES: The revenue impact of
import restrictions amounted to about US$1.4 billion,
or about US$275 million annually, between 2015 and
2019
Sources: World Bank Country Economic Memorandum (2022)
NIGERIA
THE WORLD BANK
IBRD ⚫IDA | WORLD BANK GROUP
State level change in poverty headcount rates
(percentage points)
-1.24 to -1.54
-0.45 to -0.85
0.00 to -0.06
-0.85 to -1.24
-0.06 to -0.45
No data
Sources: 2018/19 NLSS (for consumption data), NBS
(for price data), Humanitarian Data Exchange (for map
shape files), and World Bank staff estimates.
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