The World Bank on Tuesday told President Muhammadu Buhari that there is no better time to remove fuel subsidy than now, if the government is serious about the removal. The World Bank Lead Economist, Mr. John Litwack while speaking at the launch of the latest edition of Nigeria Economic Report, stated that the best time to remove fuel subsidy would be now that global crude oil price was at its lowest level.
The World Bank chief said, now is the best time for the government to scrap subsidy, as doing so would not push retail pump price beyond an average of N100 per litre, or generate the kind pressure that would negatively impact on the people beyond what they are currently facing. Litwack said, although the fuel subsidy appears to have vast modest benefits for the majority of citizens, the costs are quite high. He noted that there is a strong tendency for the cost of the fuel subsidy to increase over time as increasing domestic demand for petrol outpaces growth in oil output or revenues.