It has been reported that the Federal Government in collaboration with the World Bank have met on how to eliminate fuel and electricity subsidies in the country.
According to reports, the Federal Government told the International Monetary Funds, (IMF) in a letter that, “The recent introduction and implementation of an automatic fuel price formula will ensure fuel subsidies, which we have eliminated, do not reemerge”, and also requested for an emergency financial assistance of $3.4bn”.
It was also reported that Chief Timipre Sylva who is the Minister of State of Petroleum Resources, revealed that the Federal Government had reached a conclusion that it could no longer bear the burden of petrol subsidy in July.
IMF also revealed that Nigeria, “expressed strong commitment to prevent fuel subsidies from resurfacing and to fully eliminate electricity tariff shortfalls by mid-2021″.
Meanwhile, the World Bank President, Mr David Malpass, met with the Minister of Finance, Budget and National Planning and the Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, and made it known that the Nigerian government had ‘taken important steps to reform its subsidy regime’.
In Africa’s Pulse report, it was made known that, “The gasoline (petrol) price is set monthly by the Petroleum Products Pricing Regulatory Agency from market-based costs. When international petroleum product prices start to recover, the PPPRA will allow price increases accordingly”.
It was earlier reported in March 2020, that the Federal Government removed petrol subsidy, after reducing the pump price of the product to N125 per litre from N145 on the back of the sharp drop in crude oil prices. But it re-emerged this year following the significant rise in oil prices.