The President of the World Bank Group, Mr. David Malpass has once more reiterated the need for FGN to reconsider its policy on fuel subsidy. He said that the huge amount being expended on the policy could be channeled to other critical sectors.
The Senate last week approved the total sum of N4 trillion for petrol subsidy in 2022. The figure represented the amount contained in two separate requests by the President to the National Assembly for approval. The President in a letter to the Legislature, sought an additional N2.557tr to fund subsidy payments from July to December, 2022.
But speaking during the media briefing, Malpass pointed out that generalized subsidies have significant negatives effects on any system.
First, they are expensive because they go to everyone. They are often used by people with upper incomes than by people with lower incomes so they are not targeted.
“So, we encourage that when there is need for subsidy, either food or for fuel, that it should be carefully targeted at those most in need of it. And so, we have encouraged Nigeria to rethink its subsidy effort,” he said.
