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The World Bank recently urged Nigeria to maintain its policy on removal of fuel subsidies and not reverse its current reforms.
It argues that the reforms are necessary for the nation’s long-term stability.
One of the major reforms introduced by President Bola Tinubu’s administration is the removal of fuel subsidies on May 29, 2023.
This has astronomically pushed up the price of petrol per litre to around N1,030.
Despite such calls for non-return of fuel subsidies, checks by SaharaReporters show that many countries of the world, including more developed ones than Nigeria are still spending heavily on fuel subsidies.
Data by the International Monetary Fund gives an insight into this issue.
For instance, subsidies per capita as published by IMF in September 2023 shows that in Qatar, it stood at $3897, in Saudi Arabia, the amount stood at $4817, in Kuwait, the amount stood at $5058 per capita, while that of Korea stood at $1178.
In Luxembourg, the amount stood at $4389, in the United States, the fuel subsidy per capita stood at $1535, Russia was $1419, Singapore stood at $2167, and Oman spent $1994 per capita on fuel subsidies.
The poverty rate in Qatar was put at 0.4% while in Saudi Arabia, the poverty rate stood at 13.56%. the poverty rate for Oman was put at 10.1% by the published data.
In contrast, a report by the National Bureau of Statistics says 63% of persons in Nigeria are multidimensionally poor.
Like Nigeria, Qatar is also one of the world’s leading producers of crude oil at an approximate crude oil production of 1.76 million per day, that of Saudi Arabia is estimated at 9.5 million barrels per day.
Experts and political commentators have argued that the World Bank’s position is not in tandem with the realities in Nigeria.
Former Kaduna Senator, Shehu Sani had alleged that “the World Bank wants the hardship to extend to the next fifteen years before we can reach the promise land”.
“I don’t know of how many people will be remaining at that time to enjoy the fruits of the WB in its promise land. The question is how many African countries did the World Bank take to the promise land?” he posted on X.
The Nigeria Labour Congress at different times have argued that hikes in fuel prices will cause more suffering for Nigerians.
Recently, the House of Representatives called on the government to review its policies in a bid to ensure that Nigerians do not suffer too much hardship.
President Tinubu had justified the removal on the need to save money for the country and also block corruption loopholes in the country’s petrol sector.
