July 13, 2024

World Bank committed to helping Nigeria’s govt phase out petrol subsidy -WBG President

Oredola Adeola

The World Bank Group has made commitment to supporting the Nigerian Government in its plan to phase out the subsidy regime of Petrol Motor Spirit(PMS) fondly called petrol, promising increased social assistance to the poor and vulnerable that may be affected by the removal.

David Malpass, President of the World Bank Group, restated this commitment on  when he met with Vice President, Yemi Osinbajo and the Nigeria’s Energy Transition Implementation Working Group (ETWG)in in Washington DC, United States of America on Thursday.

Recall that the World Bank President had earlier warned Nigeria government that petrol subsidy in 2022 which is almost N6 trillion, could be channeled to other critical sectors of the economy to accelerate growth.

EnergyDay gathered that the Nigeria’s ETWG delegation seek are in the US to seek global partnerships and support for Nigeria’s recently launched Energy Transition Plan.

President Malpass during the conversation with Vice President Osinbajo promised the readiness of the World Bank to supporting Nigeria in phasing out regressive fuel subsidies, while increasing social assistance for the poor and vulnerable.

Malpass also commended the FG’s plan to achieving universal energy access and reducing GHG emissions while maintaining reliable baseload.

He also encouraged a decisive move toward exchange rate unification and stabilization by Nigeria, highlighting the economic benefits for the Nigerian people.

The World Bank Chief also called for a unified exchange rate will significantly improve the business enabling environment in Nigeria, attract foreign direct investment, and reduce inflation.

He also emphasised on the need for the Nigerian government to prioritise increasing domestic revenues through broadening Nigeria’s tax base and increasing the efficiency of tax administration.

 

Osinbajo and the team are expected to meet US Vice President, Kamala Harris; US Secretary of Energy, Jennifer Granholm; Secretary of Treasury, Janet Yellen, and President of World Bank Group, David Malpass, among others.

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