Former World Bank president David Malpass has expressed confidence in President Bola Tinubu’s ending of the fuel subsidy regime and scrapping of the dual exchange rates in Nigeria, saying it will help reduce corruption in Nigeria.
Malpass described the fuel subsidy regime and dual exchange rate as harmful to the Nigerian economy.
According to the former World Bank President, “These are important steps toward currency stability, lower inflation, and reduced corruption in Africa’s most populous country.”
Recall that, during President Tinubu inaugural speech on May 29, said the era of subsidy payment on fuel has ended.
He said the 2023 Budget made no provision for fuel subsidy and more so, subsidy payment is no longer justifiable.
“The fuel subsidy is gone,” Tinubu had declared in his inaugural speech at the Eagle Square after he was sworn in as Nigeria’s 16th President.
Tinubu said his government shall instead channel funds into infrastructure and other areas to strengthen the economy, adding that a “unified exchange rate” is guaranteed under his administration.
Following Tinubu’s pronouncement, the Nigerian National Petroleum Company Limited, announced the adjustment of the pump price across its retail outlets nationwide.
Also in his inaugural speech, President Tinubu promised “thorough house cleaning” on the country’s monetary policy.
Following up on that pronouncement, the Central Bank of Nigeria (CBN) announced the unification of exchange rates, collapsing all previous windows into one.
