World Bank backs petrol subsidy removal

The bank made this known in its ‘Africa’s Pulse’ report entitled ‘Charting the road to recovery’ saying countries in sub-Saharan Africa were seizing the opportunity created by the crisis to accelerate the structural reform agenda.

The World Bank noted that the Nigerian government had eliminated petrol subsidy and established a market-based pricing mechanism with no price ceilings.

“The COVID-19 crisis is not being wasted among countries in the region… In Nigeria, the government has taken important steps to reform its subsidy regime,” it said.

“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.”