Following recent advice from the World Bank urging the Federal Government to review upward the pump price of Premium Motor Spirit, PMS, Nigerians are facing a tougher time ahead.
The World Bank claimed that the government may still be paying for fuel subsidy, which was removed by President Bola Tinubu on May 29, 2023.
The bank believes the current price of fuel in Nigeria is not cost-reflective and needs to be reviewed upward to about N750 per liter, compared to the current N650 being paid by Nigerians.
During his presentation of the Nigeria Development Update, December 2023 edition titled, ‘Turning The Corner’ (from reforms and renewed hope, to results) on Wednesday in Abuja, the bank’s Lead Economist for Nigeria, Alex Sienaert, revealed that based on the official exchange rate, fuel should cost N750/litre.
He emphasized the need for the price of petrol to be around N750 per litre, more than the N650 per litre currently paid by Nigerians, hinting at the partial return of the subsidy.
This advice comes at a time of terrible hardship in the country caused by the removal of fuel subsidy earlier in the year.
The advice raised concerns among various stakeholders, with the Nigeria Labour Congress (NLC), the Peoples Democratic Party (PDP), and other stakeholders warning the government against heeding the advice.
NLC spokesman, Beson Upah, expressed that raising the pump price to N750 per litre would invite anarchy upon the land, emphasizing that the current fuel price has already “destroyed the country.”
He criticized the World Bank for being unresponsive to the current minimum wage in Nigeria and urged the government to remain committed to fighting inherent corruption in the downstream sector of the petroleum industry.
Similarly, Hon. Debo Ologunagba, the National Publicity Secretary of the PDP, voiced dissatisfaction with the call for fuel price increase, criticizing the IMF and World Bank for the state of Nigeria’s economy following their advice.
He emphasized the need for the government to focus on the well-being of the people and reject any increase in fuel pump price at all costs.
Dr. Yunusa Salisu Tanko, Chief Spokesperson for the Labour Party Presidential Campaign Council, stated that the World Bank’s move was an attempt to continue colonizing African countries. He urged the government to be creative and find a solution to the country’s current problems through creative leadership.
However, a chieftain of the ruling All Progressives Congress, APC, Mr. Mathew Adah, maintained that there is no cause for alarm, expressing confidence in President Tinubu’s ability to handle the situation and improve the economy over time.