The World Bank has revealed that Nigeria spent N10 trillion a year subsidizing petrol and exchange rates by 2022.
According to Indermit Gill, Senior Vice President of the World Bank Group, this figure, amounting to $15 billion at the free market exchange rate, was lost through a combination of fuel subsidies and disparities in exchange rates.
They include allowing that unified exchange rate to be determined by the market.
He said the cost of subsidizing PMS and keeping its price below market levels amounted to N4.
5 trillion in 2022.
“Together, these two subsidies, the implicit one from the exchange rate and the explicit PMS subsidies amounted to a staggering 10 trillion Naira a year by 2022, or 15 billion dollars at the free market exchange rate,” Gill explained.
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