* Expresses concern over fate of 7.1m more
The World Bank has noted that no fewer than four million Nigerians were pushed into the poverty trap in the first six months of 2023.
The World Bank says another 7.1 million Nigerians would join the riddle if properly targeted measures are not taken to manage the impact of the removal of subsidy on Premium Motor Spirit, otherwise known as petrol.
The multilateral development institution made this known during the launch of the Nigeria Development Update (NDU) in Abuja on Tuesday, June 27.
It noted that “compensating transfers will be essential in helping to shield Nigerian households from the initial price impacts of the petrol subsidy reform.”
The World Bank stated that the recent removal of petrol subsidy and the foreign exchange (FX) reforms were critical steps towards addressing long-standing macroeconomic imbalances.
The reforms, it noted, have the potential to establish a solid foundation for sustainable and inclusive growth.
The June 2023 edition of the World NDU titled, ‘Seizing the Opportunity,’ stated that the recent major reforms initiated by the new administration under President Bola Tinubu, such as the elimination of the petrol subsidy and reforms in the FX market.
The report noteed that the reforms were crucial to begin to rebuild fiscal space and restore macroeconomic stability, adding that they would lift Nigeria’s growth potential, with the economy expected to grow at 3.3 per cent in 2023, 3.7 per cent in 2024, and 4.1 per cent in 2025.
The World Bank report said: “While inflation will be higher in 2023, it will be lower in 2024 and 2025 if the right policy mix is sustained. Compensating transfers will be essential in helping to shield Nigerian households from the initial price impacts of the subsidy reform.