Posted 12/14/2023, 12:34:38 AM
World Bank Questions Transparency of Nigeria's Fuel Subsidy Reforms and Impact on Revenues
- World Bank says NNPCL not transparent about financial gains from fuel subsidy removal and impact on federation revenues
- Gains in net oil revenue lower than expected given removal of ~N380 billion per month fuel subsidy
- Risk that implicit fuel subsidy has reemerged, keeping net oil revenues lower
- World Bank estimates market price of petrol should be around N750/litre, higher than current N650 retail price
- Reforms expected to undo increases in poverty from 2024 onward, though only marginally and slowly