It is unclear whether Nigeria’s fuel subsidies – a key fiscal reform from President Bola Tinubu – are totally gone, ratings agency Fitch said on Thursday.
Petrol prices tripled in Africa’s largest economy last month after the newly inaugurated Tinubu pledged to scrap costly subsidies, a move that Fitch said affirmed its “B-” credit rating.
But the ratings agency said it is still watching to see the full impact of higher prices on government finances.
“It is unclear whether current fuel prices reflect full subsidy withdrawal, in particular, whether the Nigerian National Petroleum Corporation is still benefitting from a preferential exchange rate,” Fitch said in a note.
It added that it sees a low risk of backtracking on subsidy removal despite public anger over higher fuel prices.
– Agency Report