Nigeria lost N10 trillion in revenue to fuel subsidy, multiple exchange rates in 2022 – World Bank

Oct. 15, 2024 - Nairametrics

The World Bank has said Nigeria was losing around N10 trillion in foregone revenue to fuel subsidy and multiple exchanges as of 2022 before the implementation of President Tinubu’s reforms. “The total loss in foregone revenue of oil, custom import duties and taxes amounted to N5.

2 trillion in 2022. Together, these two subsidies—the implicit one from the exchange rate and the explicit PMS subsidy—amounted to a staggering N10 trillion a year by 2022 or $15 billion at the free market exchange rate.

“Ways and means advances became the primary way of financing the government to offset the cost of exchange rate and PMS subsidy, this meant inflation of course. Key among these reforms was the removal of the petrol subsidy and the consolidation of the multiple exchange rate regimes.

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