Abuja, July 6, 2023 – World Bank says the Federal Government will save N2 trillion in the remaining six months of 2023 with the removal of petrol subsidy and over N11 trillion by 2025.
The Bank gave this projections in its June 2023 Nigeria Development Update just released in Abuja.
According to the NDU report, the removal of the petrol subsidy and foreign exchange reforms are vital steps toward rebuilding fiscal space and restoring macroeconomic stability.
The report stressed the need for further policy reforms, acknowledging that the critical reforms the new administration had already initiated to address macroeconomic imbalances.
It advised President Bola Ahmed Tinubu to take advantage of the opportunity to have a transformative impact on millions of Nigerians and establish a solid foundation for sustainable and inclusive growth.
The NDU recommended implementing a comprehensive reform package, including a new social compact to protect the poor and vulnerable towards maximising the collective impact on growth, job creation, and poverty reduction.
Shubham Chaudhuri, the World Bank Country Director for Nigeria, commended the Tinubu government’s efforts to implement long-awaited reforms and emphasised the need for compensatory actions to mitigate the short-term impact on the poor.
Chaudhuri also advocated for the implementation of a cash transfer programme to provide relief to those most affected by higher petrol prices as part of a broader agreement to redirect fiscal resources towards development priorities.
