Fuel Prices Skyrocket to Over N1,000 Per Litre as World Bank Urges Nigeria to Sustain Reforms

 

The price of petrol in Nigeria has surged to an unprecedented N1,030 per litre following the removal of fuel subsidies, a major reform introduced by President Bola Tinubu's administration on May 29, 2023. The World Bank has recently advised Nigeria to maintain this policy and avoid reversing its current reforms, arguing that they are crucial for the country's long-term economic stability.

Despite the World Bank's recommendation, data from various countries reveals that several nations, including more developed ones, continue to heavily subsidize fuel. According to the International Monetary Fund (IMF), countries like Qatar, Saudi Arabia, and the United States still spend significantly on fuel subsidies. For example, in September 2023, Qatar’s per capita subsidy stood at $3,897, while Saudi Arabia’s was $4,817, and Kuwait’s reached $5,058. In comparison, the United States provided $1,535 per capita in fuel subsidies.

While these countries spend heavily on subsidies, they also have much lower poverty rates. Qatar’s poverty rate is just 0.4%, while Saudi Arabia’s stands at 13.56%, and Oman’s at 10.1%. In stark contrast, the National Bureau of Statistics reports that 63% of Nigerians live in multidimensional poverty.

Despite being a major oil producer like Qatar and Saudi Arabia, Nigeria has struggled with poverty, and experts have questioned the World Bank's stance on the subsidy removal. Former Senator Shehu Sani criticized the World Bank's position, claiming it could prolong hardship for Nigerians for many years. "The World Bank wants the hardship to extend to the next fifteen years before we can reach the promised land," Sani stated on social media.

The Nigeria Labour Congress (NLC) has also raised concerns, arguing that rising fuel prices will only increase the suffering of ordinary Nigerians. In response, the House of Representatives has called on the government to review its policies to mitigate the harsh impact on the population.

President Tinubu has defended the removal of fuel subsidies, citing the need to save money for the country and curb corruption within the petroleum sector. However, the ongoing debate highlights the growing concerns about the economic challenges faced by Nigerians as fuel prices continue to soar.