World Bank advises against continuing fuel subsidies to the FG and States

The country representative issued a warning that if the proper decisions about the gasoline subsidy regime are not made, the situation could worsen.

Shubham Chaudhuri, the World Bank’s country director, has urged Nigeria’s federal and state governments to think about the financial effects that a continued fuel subsidy regime could have on their tax collections as the government mulls eliminating gasoline subsidies.

On day three of the induction event for newly elected and reelected governors at the Banquet Hall of the Presidential Villa in Abuja, Chaudhuri issued the warning on Friday.

The World Bank official issued a warning that if the proper decisions about the fuel subsidy system are not made, the situation might worsen.

He voiced concern about the rising debt levels of some states and issued a warning that things could get worse depending on how the governments decided to handle the gasoline subsidy system.

The goal of the induction program was to introduce the incoming governors to the possibilities available with development partners, such as grants, partnerships, and project sponsorships.

Since Monday’s events, talks have focused primarily on issues related to revenue production, budgeting, and good governance; several of the new members have said that the orientation exercise was an excellent place for them to start.

After being sworn in on May 29, the newly elected and re-elected governors will be in charge of overseeing the resources of their respective states.

Former governors’ knowledge and experiences that they offered during the program may serve as a springboard for their successors.