The World Bank has asked Nigeria’s federal and state governments to consider the financial implications that a continuous fuel subsidy regime could have on their revenues, as the government contemplates the removal of fuel subsidy
The Country Director of the World Bank, Shubham Chaudhuri gave the advice on Friday during an induction programme for newly elected and re-elected governors at the Banquet Hall of the Presidential Villa in Abuja.
The World Bank official warned that the situation could get worse if the right decisions about fuel subsidy regime are not taken.
He expressed concern over the rising debt profile of some states, warning that the situation could get worse, depending on the decision of the governments on the fuel subsidy regime.
The induction programme was aimed at intimating the governors-elect to the opportunities that exist with development partners, including grants, partnerships, and project sponsorships.
Issues around revenue generation, budgeting, and good governance dominated discussions since Monday’s events, with some of the new inductees describing the orientation exercise as a good start for them.
The incoming and re-elected governors will have the responsibility of managing the resources of their respective states after they are sworn in on May 29.
The knowledge and experiences of former governors shared during the programme could be the launch pad for their successors.
