On December 13, the World Bank asserted that the government might still be footing the bill for the fuel subsidy, which was eliminated by President Bola Tinubu on May 29, 2023. The bank argued that the current fuel price in Nigeria does not reflect the actual cost and needs to be raised.
According to the World Bank's Lead Economist for Nigeria, Alex Sienaert, the price of petrol should be approximately N750 per litre, surpassing the current N650 paid by Nigerians. Sienaert made this revelation during the presentation of the Nigeria Development Update, December 2023 edition titled 'Turning The Corner' in Abuja.
This advice comes amidst the significant hardships faced by the country following the removal of the fuel subsidy in May this year. Shortly after the subsidy removal announcement, the Nigerian National Petroleum Company Limited (NNPCL) raised the pump price of PMS from N195 per litre to as high as N577 in May. Currently, Nigerians are paying N650 for a litre in some cities, and in certain areas, it exceeds N670/litre.
This spike in fuel prices has led to a surge in the cost of essential goods and services across the nation, exacerbating the challenges faced by average Nigerians. The National Bureau of Statistics reported a rise in Nigeria's food inflation to 32.84% in November, up from 31.51% the previous month.
Several stakeholders, including the Nigeria Labour Congress (NLC), the Peoples Democratic Party (PDP), and other critics, have expressed their discontent with the World Bank's recommendation. They argue that such an increase would further impoverish the masses, citing the current economic situation in the country.
NLC spokesman Beson Upah criticized the World Bank, accusing it of being indifferent to Nigeria's challenges and warned that implementing the suggested increase could lead to anarchy. Similarly, the PDP's National Publicity Secretary, Hon. Debo Ologunagba, blamed the IMF and World Bank for Nigeria's economic problems and rejected the call for a fuel price hike.
Dr. Yunusa Salisu Tanko, Chief Spokesperson for the Labour Party Presidential Campaign Council, viewed the World Bank's move as an attempt to continue colonizing African countries. He emphasized the need for creative leadership, suggesting that building refineries in each geo-political zone could help reduce fuel prices.
Contrarily, a chieftain of the ruling All Progressives Congress (APC), Mr. Mathew Adah, reassured Nigerians, expressing confidence in President Tinubu's intelligence and urging patience as the government works towards stabilizing the economy inherited from the previous administration.
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