Finance Minister Zainab Ahmed revealed on Wednesday that Nigeria has been awarded $800 million by the World Bank. It is to bolster its national social program prior to the June termination of its expensive but popular gasoline subsidies.
Compared to its expenditure on healthcare and education, the largest economy in Africa has set aside $7.3 billion this year to pay for petrol subsidies until mid-2023.
Government Spokesperson Ahmed indicated that the administration was considering cash transfers and mass transit buses for workers in order to assist those who will be most affected by the loss of subsidies.
She also claimed that the country has a list of ten million vulnerable households or fifty million individuals.
During the cabinet meeting, Ahmed told reporters in Abuja that “a number of things are still on schedule.”
Some of them can be begun immediately, while others will require more time.
The World Bank forecasted in 2021 that COVID-19 will lead an additional 11 million Nigerians into poverty by 2022. This brings the total number of Nigerians living in poverty to above 100 million. It is estimated that there are 200 million citizens.
Ahmed stated that the withdrawal of the subsidy is now being discussed by multiple government branches. The administration of President-elect Bola Tinubu as well.
As the fuel subsidy will be abolished in June, Labour Minister Chris Ngige recommended this week that the new administration of Tinubu enhance public sector salaries. When Buhari resigns in May, Tinubu will succeed him as president.
The government receives billions of dollars annually from oil exports. Many Nigerians believe the only benefit they receive from the state is cheap, subsidized gasoline.
