Fuel Subsidy: Nigerian govt secures $800 million World Bank facility

Nigeria has secured a World Bank facility worth $800 million.

The Minister of Finance, Budget and National Planning, Zainab Ahmed, disclosed this on Wednesday while briefing State House correspondents on outcome of the Federal Executive Council (FEC) meeting in Abuja.

The meeting was presided over by President Muhammmadu Buhari.

Mrs Ahmed said the money would be used to attend to a segment of post-petroleum subsidy palliatives requirement in the country.

According to her, the $800 million is the first tranche of palliatives to be disbursed through cash transfers to about 50 million Nigerians, who belong to the most vulnerable category of society.

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She said: “When we were working on the 2023 Medium Term Expenditure Framework and the Appropriation Act, we made that provision to enable us exit fuel subsidy by June 2023.

”We’re on course, we’re having different stakeholders’ engagements, we’ve secured some funding from the World Bank.

“That is the first tranche of palliatives that will enable us give cash transfers to the most vulnerable in our society that have now been registered in a national social register.

“Today that register has a list of 10 million households. 10 million households is equivalent to about 50 million Nigerians.”

Mrs Ahmed added that the government was ready to go beyond cash transfer to cushion the effect the subsidy removal will have on Nigerians.

She said “We also have to raise more resources to enable us do more than just the cash transfers and also in our engagements with the various stakeholders.

“There are various kinds of tasks that we have go beyond the requirement of just giving cash transfers. Labour, for example, might be looking for mass transit for its members.

“So, there are several things that we’re still planning and working on, some we can start executing quickly, some are more medium-term implementation.”

On how much funding was received from the World Bank for the execution of the planned exit, Mrs Ahmed said: “$800 million for the scale up of the National Social Investment Programme at the bank and it’s secured, it’s ready for this disbursement.”