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The World Bank has predicted that 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 World Bank made this projection in its June 2023 Nigeria Development Update released on Tuesday in Abuja.
According to the NDU report, the removal of the petrol subsidy and FX management reforms are vital steps toward rebuilding fiscal space and restoring macroeconomic stability.
The report emphasised the need for further policy reform measures and acknowledges the critical reforms that the new administration has 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.
World Bank Country Director for Nigeria, Shubham Chaudhuri, 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.
