Aduragbemi Omiyale
By Aduragbemi Omiyale
The World Bank has projected that by 2025, Nigeria should record fiscal gains of N21 trillion from the removal of fuel subsidy this year.
On his inauguration as President, Mr Bola Tinubu declared that his government would not pay to make Nigerians purchase premium motor spirit (PMS), otherwise known as petrol, at a cheaper rate.
Before his announcement, a litre of petrol was dispensed at fuelling stations at N185, but after the new policy, it jumped to at least N488 per litre.
This move was welcomed by several persons, including the citizens, who berated organised labour, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), which wanted to oppose the policy by declaring a nationwide protest.
The World Bank, through one of its Lead Economists, Mr Alex Seinart, commended the government for eliminating the cancerous petrol subsidy.
Speaking on Tuesday at an event to assess the nation’s economy in the last six months, Mr Seinart said the policy would help the country to achieve estimated fiscal gains of about N3.9 trillion in 2023 and N21 trillion by 2025.
He further predicted that the petroleum subsidy removal was likely to lead to an increase in inflation in the upcoming months before contributing to disinflation in the medium term.
On his part, the World Bank Director for Nigeria, Dr Subham Chadhuri, projected a surge in the country’s inflation because of the fuel subsidy removal and the unification of the exchange rate.
