World Bank offers support to end fuel subsidy in Nigeria

The World Bank Group’s President, David Malpass, has stated that the bank is prepared to assist Nigeria in phasing off regressive fuel subsidies while enhancing social assistance for the poor and vulnerable.

In a statement published on the Bank’s website which gave insight  into the meeting between Malpass and Vice President Yemi Osinbajo on Thursday, Malpassin stressed the need for a unified exchange rate in Nigeria, which would significantly improve the business-enabling environment in Nigeria, attract foreign direct investment, and reduce inflation.

The statement reads “President Malpass emphasized the importance of integrating climate and development, as well as the need for an enabling policy and regulatory environment alongside strengthened institutions in the energy sector.

“President Malpass affirmed to Vice President Osinbajo the WBG’s readiness to support Nigeria in phasing out regressive fuel subsidies, while increasing social assistance for the poor and vulnerable.”

President Malpass and Vice President Osinbajo discussed Nigeria’s Energy Transition Plan. Malpass also welcomed  Nigeria’s commitment to achieving universal energy access and reducing GHG emissions while maintaining reliable baseload.

On the exchange rate crisis, President Malpass encouraged a decisive move toward exchange rate unification and stabilization by Nigeria, highlighting the economic benefits for the Nigerian people.

“President Malpass emphasized to Vice President Osinbajo that a unified exchange rate will significantly improve the business enabling environment in Nigeria, attract foreign direct investment, and reduce inflation.

“President Malpass and Vice President Osinbajo also discussed the importance of increasing domestic revenues through broadening Nigeria’s tax base and increasing the efficiency of tax administration,“ the statement added.