Mathew Verghis Assumes Role as World Bank Country Director for Nigeria
In July 2025, Mathew Verghis took up the post of World Bank Country Director for Nigeria, succeeding his predecessor after a competitive selection process. An Indian national with more than two decades of experience in economic policy and development, Verghis joined the World Bank in 1999 and has held senior leadership positions across Africa, East Asia, Europe and Central Asia. Most recently he served as Regional Practice Director for Prosperity in the South Asia region, based in Washington, DC.
Background and Expertise
Verghis’s career spans work on fiscal reform, private‑sector development, and financial‑sector stability. His assignments have included:
- Designing and monitoring structural adjustment programs in East Africa.
- Advising central banks on capital adequacy and risk‑based supervision in Southeast Asia.
- Leading the World Bank’s engagement with sovereign wealth funds in Europe and Central Asia.
These experiences give him a deep understanding of the challenges and opportunities facing emerging economies, particularly those seeking to transition from low‑income to middle‑income status.
Nigeria’s Growth Prospects and the Trillion‑Dollar Goal
During an edited conversation with Michael Nwadike, Verghis addressed the feasibility of Nigeria reaching a $1 trillion GDP by 2031. He noted that while the country’s current growth trajectory is positive, it falls short of the ambition required:
“GDP growth of 4.5 % in the second quarter of 2025 was Nigeria’s best performance in a decade, but the target should be 7‑8 % to unlock the trillion‑dollar milestone.”
He emphasized that achieving higher growth hinges on three inter‑linked pillars:
- A resilient and well‑capitalised banking sector capable of intermediating credit to productive enterprises.
- Macroeconomic stability anchored by credible exchange‑rate management and inflation control.
- Revenue‑raising reforms that enable the government to finance infrastructure and human‑capital investments without relying excessively on borrowing.
Banking Sector Recapitalization and Financial Stability
Verghis pointed to the 2023‑2024 banking recapitalisation as a critical step toward strengthening financial intermediation. According to the Central Bank of Nigeria, 33 banks collectively raised ₦4.65 trillion (approximately US$3.45 billion) to meet new capital adequacy ratios.
The impact of this effort is already visible in the loan‑to‑asset ratio, which rose from an estimated 28 % in 2022 to 33 % in mid‑2025. While this improvement signals greater lending capacity, Verghis cautioned that the ratio remains below the sub‑Saharan African average of 33 % and far behind peers such as the Philippines, where private‑sector credit stands at roughly 50 % of banking assets.
He argued that further capital deepening—coupled with improved credit‑risk assessment—will be essential to finance the ambitious infrastructure projects needed for sustained 7‑8 % GDP growth.
Impact of 2023‑2024 Macro‑Reforms
The conversation also touched on the controversial reforms introduced in late 2023: the unification of the exchange rate and the removal of the petrol subsidy. Verghis described these measures as “crucial for stabilising the economy,” drawing a parallel to India’s 1993 balance‑of‑payments crisis, when the Reserve Bank of India pledged gold reserves to secure emergency financing.
He noted that, despite short‑term pain for households, the reforms have begun to yield macro‑economic benefits:
- Inflation has declined from around 30 % in early 2023 to roughly 15 % by mid‑2025.
- The parallel‑market premium on the naira has narrowed to less than 2 %, indicating a more unified foreign‑exchange market.
- Official GDP growth reached 4.5 % in Q2 2025, the highest quarterly figure in ten years.
Nevertheless, Verghis stressed that lower inflation alone is insufficient; sustained poverty reduction requires that real incomes rise faster than price levels.
Policy Levers for Inclusive Growth
When asked about additional reforms that could accelerate Nigeria’s development, Verghis highlighted the new tax legislation enacted in 2024, which broadens the tax base and improves collection efficiency. He observed that the government‑revenue‑to‑GDP ratio, once among the lowest globally, has risen modestly but still lags behind regional benchmarks.
Beyond fiscal measures, he identified three priority areas for public‑sector action:
- Improving the quality and reach of basic services—particularly maternal health, primary education, and access to clean water and sanitation.
- Creating a conducive environment for a competitive private sector through streamlined business registration, reliable electricity, and transparent regulatory frameworks.
- Strengthening social‑protection programmes to cushion vulnerable populations during periods of economic transition.
Verghis concluded that inclusive growth will only be realised when the gains from macro‑economic stability and financial‑sector strength translate into tangible improvements in everyday Nigerians’ lives.
Conclusion
Mathew Verghis’s appointment brings a seasoned development economist to the helm of the World Bank’s Nigeria engagement at a pivotal moment. His assessment acknowledges the progress made since the 2023‑2024 reform package while candidly outlining the gaps that remain—particularly in banking depth, revenue mobilisation, and service delivery. By focusing on capital‑market deepening, prudent fiscal management, and targeted investments in human capital, Nigeria has a plausible pathway toward the ambitious goal of a $1 trillion economy by 2031, provided that policy implementation remains consistent and inclusive.
