Subsidy: FG Gets $800m Grant from World Bank
Ahead of the planned subsidy removal in June 2023, the Federal Government has announced it received $800 million grant from the World Bank. The Minister of Finance, Budget and National Planning, Zainab Ahmed gave the announcement during the week after the Federal Executive Council meeting chaired by President Muhammadu Buhari today.
The grant sum made available to the country by the multilateral lender is to relieve pressures on 50 million vulnerable Nigerians or 10 million households, as part of its subsidy palliatives measures.
Mrs Ahmed hints that engagements are ongoing with the newly established Presidential Transition Council (PTC) and the incoming administration, to drive the palliative program, which includes the need for buses among various considerations.
To implement the petroleum industry act, Nigeria will remove subsidy payments in June. This is expected to raise the pump price of petroleum products to an ongoing market rate.
Analysts said the expected jump in pump price will drive inflation upward, and the interest rate is already ascending but there will be a point when the monetary authority will have to reduce its hawkish tone.
Meanwhile, the Federal Government has approved the sum of 10.9 billion naira for the supply and installation of information and communication technology components for the 2023 National population census scheduled to hold in May.
This was part of the approvals by FEC today chaired by President Muhammadu Buhari i. #Subsidy: FG Gets $800m Grant from World Bank Naira Lost 11% as Banks Issue New Update on FX Spending
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