The World Bank’s suggestion to review upward the pump price of Premium Motor Spirit (PMS) in Nigeria has raised concerns about potential hardships for citizens. The Bank indicated that the current fuel price in Nigeria is not cost-reflective and recommended an increase to approximately N750 per liter, above the current N650.
The advice, shared during the Nigeria Development Update, December 2023 edition, has sparked debates due to the economic challenges already faced by Nigerians since the removal of fuel subsidies earlier in the year. The hike in fuel prices has contributed to increased prices of essential goods, escalating food inflation to 32.84% in November.
Various stakeholders, including the Nigeria Labour Congress (NLC) and the People’s Democratic Party (PDP), criticized the World Bank’s recommendation, expressing concerns about its potential to worsen the economic plight of Nigerians. The NLC condemned the suggestion, highlighting the disparity between minimum wages in Nigeria and developed countries, emphasizing the detrimental impact of a further fuel price hike.
The PDP spokesperson also criticized the IMF and World Bank, attributing Nigeria’s economic struggles to their influence. Similarly, a representative from the Labour Party Presidential Campaign Council criticized the move, suggesting alternative solutions like building refineries to reduce fuel costs.
However, an APC chieftain advocated for patience, believing that President Tinubu would make informed decisions. Despite differing opinions, the World Bank’s proposal continues to spark debates about its potential impact on the country’s economy and citizens’ livelihoods.
