The World Bank says the cost of fuel subsidy in Nigeria has exceeded the government’s spending on health, education and social protection for Nigerians.

It therefore said that removing fuel subsidy would help the government towards its poverty reduction scheme.

The Washington-based lender said this in its latest Nigeria Development Update report, titled, ‘The Continuing Urgency of Business Unusual’, which was released on Tuesday.

The report read in part, “In 2021, Nigeria’s petrol subsidy cost around $4.5bn, or roughly two per cent of GDP, far exceeding federal government spending on health, education, and social protection.

“Therefore, diverting spending away from the petrol subsidy towards more pro-poor causes could help spread the gains of growth, which is essential for reducing poverty.”

According to the bank, Nigeria is not benefiting from high oil prices due to lower oil output and fuel subsidy cost

Credit: Punch

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