Nigerians are expected to face increased challenges following the recent recommendation from the World Bank, urging the Federal Government to raise the pump price of Premium Motor Spirit (PMS). The World Bank, on December 13, asserted that the government might still be footing the bill for fuel subsidies, which President Bola Tinubu removed on May 29, 2023.
According to the World Bank’s Lead Economist for Nigeria, Alex Sienaert, the current fuel price in Nigeria is not cost-reflective and should be elevated to approximately N750 per litre, surpassing the current N650 paid by Nigerians. Sienaert disclosed this during the presentation of the Nigeria Development Update in Abuja on December 13.
The advice comes amid the severe hardships experienced in the country following the removal of the fuel subsidy in May. Since then, the pump price has risen significantly, contributing to higher prices of essential goods and services nationwide.
In response, various stakeholders, including the Nigeria Labour Congress (NLC), the Peoples Democratic Party (PDP), and other critics, have condemned the World Bank’s recommendation. They argue that such an increase would further impoverish the masses, given the already challenging economic situation in the country.
NLC spokesman Beson Upah criticized the World Bank for being insensitive to the plight of Nigerians, describing the institution as a “predatory” force that lacks consideration for the Global South. He warned that raising the pump price would invite anarchy.
Hon. Debo Ologunagba, the National Publicity Secretary of the PDP, blamed the International Monetary Fund (IMF) and the World Bank for Nigeria’s economic troubles. He expressed dissatisfaction with the lack of tangible palliatives for Nigerians since the removal of the fuel subsidy.
Dr Yunusa Salisu Tanko, Chief Spokesperson for the Labour Party Presidential Campaign Council, viewed the World Bank’s move as an attempt to continue colonizing African countries. He emphasized the need for creative leadership and the construction of refineries to address the economic challenges.
However, a chieftain of the ruling All Progressives Congress (APC), Mr. Mathew Adah, expressed confidence in President Tinubu’s ability to handle the situation intelligently, urging Nigerians to be patient.
The World Bank’s recommendation has sparked a debate on the potential consequences of a fuel price increase, with critics warning of detrimental effects on the already struggling population.