World Bank's Fuel Price Advice Sparks Concerns of Hardship for Nigerians

 

Nigerians face a potential increase in the pump price of Premium Motor Spirit (PMS) following a recent advisory from the World Bank urging the Federal Government to reevaluate the current price. The World Bank claims that the government may still be covering fuel subsidies, removed by President Bola Tinubu on May 29, 2023.

 According to the bank's Lead Economist for Nigeria, Alex Sienaert, the current fuel price is not cost-reflective, suggesting it should be around N750 per litre, exceeding the N650 currently paid by Nigerians. This advice comes amidst the economic challenges triggered by the subsidy removal earlier this year.

Nigerians have experienced increased prices for essential goods and services, contributing to a rise in food inflation. The National Bureau of Statistics reported a surge to 32.84% in November. While the World Bank recommends an upward adjustment in fuel prices, various stakeholders, including the Nigeria Labour Congress (NLC), the Peoples Democratic Party (PDP), and others, have criticized the suggestion. 

They argue that the World Bank is insensitive to the plight of Nigerians and caution against further hardship for the masses. The NLC emphasized that the current fuel price has already caused significant damage to the country and rejected the idea of an increase. The PDP blamed international financial institutions like the IMF and the World Bank for Nigeria's economic challenges, stating that the call for a fuel price hike is unacceptable. 

Some stakeholders suggested creative solutions, such as building refineries across the country, to address economic issues rather than increasing fuel prices. Meanwhile, a chieftain of the ruling APC urged patience, stating that President Tinubu is an intelligent leader who understands the complexities of the inherited economic situation.