Subsidy removal, Forex exchange unification: World Bank tasks Tinubu to rebuild fiscal space

The World Bank has tasked the administration of President Bola Tinubu to rebuild Nigeria’s fiscal space, following the removal of petrol subsidy and the unification of the Foreign Exchange (FX)rates.

The bank’s position was contained in its latest Nigeria Development Update (NDU), released, yesterday.

Specifically, the organization said that the president should seize the window of opportunity for a transformative impact on the lives of millions of Nigerians and establish a solid foundation for sustainable and inclusive growth.

To maximize the collective impact on growth, job creation, and poverty reduction, the June 2023 edition of the NDU, titled “Seizing the Opportunity,” added that it was critical to implement a comprehensive reform package encompassing a range of complementary measures, including a new social compact to protect the poor and most vulnerable. It added, “The challenging global economic context has put pressure on Nigeria’s economy.

In his remarks, Shubham Chaudhuri, World Bank Country Director for Nigeria also said, “The current move by the Government to implement long-anticipated reforms such as the removal of costly and opaque petrol subsidy, and efforts to harmonize the multiple FX windows, are timely and crucial to set Nigeria on the path of economic growth.