Most likely umbilical granuloma rather than infection. Sometimes a result of cord separation at the umbilicus base in newborns. It seems as if you can see some seropurulent discharge in the photo but doesn't look as if it's infected.
Correct answer: Yes, it's an umbilical granuloma. A relatively common condition caused by a lack of epithelial growth (with or without a secondary infection) after cord separation. As a result, granulomatous tissue forms. It's usually self-limiting.
