Nigerians are now expected to pay more for petrol after the Federal Government resolved to end fuel subsidy in a bid to secure the World Bank’s approval for a $3.4 billion loan.
The Nigerian National Resources Charter (NNRC), which disclosed this on its Twitter handle on Sunday, said the federal government has concluded plans to end payment of fuel and electricity subsidies by June.
The removal of fuel subsidy and hike in eletricity tariff were part of the terms set by the International Monetary Fund (IMF) and World Bank for the approval of the loan.
NNRC said the federal government has expressed a strong commitment to preventing fuel subsidies from resurfacing and to fully eliminate electricity tariff shortfalls.
Citing a report by IMF after the conclusion of its Article IV consultation with Nigeria, the agency noted that Bretton Woods institution believes that lifeline tariffs and other relief measures are adequate to protect poorer households from hikes in electricity prices.
It also highlighted the benefits from higher and more predictable availability.
“The World Bank President, David Malpass, on April 8 met with the Minister of Finance, Budget and National Planning, Zainab Ahmed and the Governor of Central Bank of Nigeria, Godswill Emefele , to discuss the removal of energy subsidies among other issues,” NNRC said.