Nigeria VP Osinbajo Meets World Bank President in Washington, Seeks Support to End Petrol Subsidy

The World Bank Group President, David Malpass on Thursday met with Vice President, Prof. Yemi Osinbajo as part of efforts to seek the multilateral institution’s support to end petrol subsidy which has become a drain to Nigeria.

The meeting which took place in Washington was disclosed in a statement posted on the World Bank’s website.

Commenting about the meeting on his official Twitter handle, the World Bank boss said it was, a “productive meeting today with Vice President @ProfOsinbajo of Nigeria.Good talks on the importance of exchange rate unification and stabilisation, phasing out fuel subsidies, Nigeria’s energy transition plan & integrating climate & development.”

However, the statement quoted Malpass to have said the discussion with Osinbajo also centred around Nigeria’s Energy Transition Plan, the importance of exchange rate unification and stabilisation as well as integrating climate and development.

He welcomed Nigeria’s commitment to achieving universal energy access and reducing GHG emissions while maintaining a reliable baseload.

President Malpass emphasised the importance of integrating climate and development, as well as the need for an enabling policy and regulatory environment alongside strengthened institutions in the energy sector.

Malpass affirmed to Vice President Osinbajo the World Bank Group’s readiness to support Nigeria in phasing out regressive fuel subsidies, while increasing social assistance for the poor and vulnerable.

He encouraged a decisive move toward exchange rate unification and stabilisation by Nigeria, highlighting the economic benefits for the Nigerian people.

“President Malpass emphasised to Vice President Osinbajo that a unified exchange rate will significantly improve the business enabling environment in Nigeria, attract foreign direct investment, and reduce inflation.

“President Malpass and Vice President Osinbajo also discussed the importance of increasing domestic revenues through broadening Nigeria’s tax base and increasing the efficiency of tax administration,” the statement added.

The federal government is estimating that N6.7 trillion would be spent on petrol subsidy next year.

World Bank Country Director for Nigeria, Shubham Chaudhuri, had said Nigeria would continue to face fiscal pressures because of its ballooning cost of fuel subsidy at a time production continues to decline.

The World Bank chief pointed out that Nigeria, for the first time since its return to democracy and as the only major oil exporter, hasn’t been able to benefit from the windfall opportunity created by higher global oil prices presently, due to its rising petrol subsidy burden.

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