The World Bank has advised President Muhammadu Buhari to remove fuel subsidy forthwith, saying now is the best time to do so. The bank noted that global crude oil price is at its lowest level and that the federal government should therefore act now. By 2018, the total spending on fuel subsidy will consume about 30 per cent of the entire oil earnings for Nigeria if the current regulated prices are maintained, the World Bank Group said yesterday in its Economic Report.
The federal government had included N150 billion as the balance of subsidy arrears for last year in the Medium Term Expenditure Frame work President Buhari sent to the National Assembly yesterday.
The World Bank report focuses on fuel subsidy and natural gas sector.
It said Nigeria was unable to accumulate a fiscal reserve in the Excess Crude Account that could have protected the country from the recent oil price shock by expending about $35 billion (About N7 trillion) from 2010 to 2014 in the subsidy scheme. Read more