The World Bank has cautioned against the reinstatement of fuel subsidies in Nigeria, urging President Tinubu’s government to maintain the subsidy removal implemented earlier.
Despite the initial praise for the move, the removal led to a significant surge in fuel prices, causing hardships for Nigerians and prompting calls for a lasting solution.
The bank contends that subsidies have adversely impacted the country’s budget, leading to deficit monetization and inflation.
It suggests that maintaining subsidy removal will encourage market competition, diversify fuel importation sources, and contribute to revenue growth.
The warning comes amid mounting pressure on President Tinubu to address the economic challenges resulting from the subsidy’s elimination.
