President of the World Bank Group David Malpass says Nigeria needs to rethink its fuel subsidy plan.
He spoke on Wednesday at a virtual news conference to herald the Meetings 2022.
At the conference, he also said Nigeria should run a single exchange rate that is market-based among other global developmental issues.
Malpass said the provision of petrol subsidy in Nigeria is not targeted at those most in need, encouraging Nigeria to rethink its subsidy effort.
He said, “Generalized subsidies have significant negatives. One is, they are expensive because they go to everyone, and they’re often taken–more used by people with upper incomes than by people with lower incomes; they’re not targeted.
“So, we encourage, when there needs to be a subsidy for either food or fuel, that it be carefully targeted, well-targeted for those most in need. And we have encouraged Nigeria to rethink its subsidy effort.”
