An unprecedented 104 million Nigerians have slipped into poverty since the announcement of president Bola Ahmed Tinubu‘s economic reforms.

 

The World Bank’s Nigeria Development Update (NDP) report, which was made public in Abuja today, supports this.

 

The World Bank study explicitly mentioned how the elimination of gasoline subsidies and the harmonization of currency rates led to severe pressures on living expenses. It said that as a result, more Nigerians fell into poverty.

 

But the global banking organization applauded the federal government for what it saw as “bold reforms.” It described the current suffering as transitory and stated that they were required to save Nigeria from the fiscal precipice.

 

The update indicated that Nigeria was not yet out of the woods but on the path to full recovery. This was a result of the various policies being implemented by both fiscal and monetary authorities.

 

The World Bank called on the Nigerian National Petroleum Company Limited, NNPCL to make public its statement of accounts and transparently disclose its revenue inflows.

 

The report reads in part: “The removal of the subsidy was announced on May 29 and pump prices were adjusted on June 1. This results in expected fiscal savings of around N2 trillion in 2023 or 0.9 percent of GDP.

 

“Between 2023 and 2025, the expected gains are over N11 trillion, against a scenario in which the subsidy had continued.”

 

On NNPC, it said: “Publish detailed financial statements and revenue flows of NPPC to safeguard the fiscal savings from the subsidy reform and ensure that oil revenues flow to the Federation (Account).”

 

In his remarks, Shubham Chaudhuri, World Bank Country Director for Nigeria, said that between N300 billion and N400 billion was expended on fuel subsidy monthly.

 

He added that the expectation is that the NNPCL should have been paying such an amount to the Federation Account. He said such had not been the case.

 

He added: “The petrol subsidy and forex management reforms are critical steps in the right direction towards improving Nigeria’s economic outlook.

 

“Now is the time to truly turn the corner by ensuring coordinated fiscal and monetary policy actions in the short to medium term.”