Fuel Price Crisis: Stakeholders Reject World Bank’s N750/Litre Recommendation

The World Bank has recommended an increase in the pump price of Premium Motor Spirit (PMS) to N750 per litre, citing non-cost reflectivity of the current N650 per litre. The announcement comes amidst widespread hardships following the removal of fuel subsidies by President Bola Tinubu on May 29, 2023.

The World Bank’s Lead Economist for Nigeria, Alex Sienaert, made this recommendation during the presentation of the Nigeria Development Update in Abuja on December 13, claiming that the government might still be paying for the removed fuel subsidy.

Currently, Nigerians are grappling with fuel prices ranging from N650 to over N670 per litre, contributing to a surge in the cost of essential goods and services. The recent data from the National Bureau of Statistics reveals a rise in food inflation to 32.84% in November.

This recommendation has triggered strong reactions from various quarters, with the Nigeria Labour Congress (NLC), the Peoples Democratic Party (PDP), and other stakeholders issuing stern warnings against implementing the suggested increase. Beson Upah, the NLC spokesman, expressed concern that such a move could lead to anarchy, emphasizing that the current fuel price has already “destroyed the country.”

Similarly, the PDP’s National Publicity Secretary, Hon. Debo Ologunagba, attributed Nigeria’s economic woes to the advice of international institutions like the World Bank and the International Monetary Fund (IMF). He strongly rejected the idea of increasing fuel prices, stating that Nigerians are yet to feel any positive impact since the subsidy removal.

Dr Yunusa Salisu Tanko, Chief Spokesperson for the Labour Party Presidential Campaign Council, labeled the World Bank’s recommendation an attempt to continue colonizing African countries. He emphasized the need for creative leadership to address Nigeria’s economic challenges and suggested building refineries in each geopolitical zone to reduce fuel prices.

Amidst these warnings and critiques, a chieftain of the ruling All Progressives Congress (APC), Mr. Mathew Adah, reassured the public, stating that President Tinubu is a thoughtful leader who will consider the best course of action for the nation’s economic well-being. He urged patience, emphasizing that the inherited economic challenges cannot be resolved overnight.