‘Inefficient, regressive subsidiaries on petrol Consumed Nigeria’s resources -W/Bank
……..nott all these subsidies are accounted for in the budget
Track UpNews
22 November 2022
The World Bank has said Nigeria’s resources had been consumed by inefficient and regressive subsidiaries on petrol, electricity and foreign exchange.
This was contained in a statement on the bank’s website announcing the launch of the new Nigeria Public Finance Review report.
The Institution says subsidies benefit only rich households and reduce government spending on poor Nigerians.
It added that the subsidies were far more than what was spent on education, health and social protection in 2021.
The statement further revealed that nott all these subsidies are accounted for in the budget, which makes them difficult to track and scrutinize.
It However noted that tavailable data suggest that these subsidies, which accounted for more than the amount spent on education, health, and social protection in 2021 benefit primarily wealthy households and they also distort incentives, discourage investment, and crowd-out spending on pro-poor programs, thereby hindering progress in Nigeria’s social development.”
It further noted that Nigeria had one of the lowest public expenditure and revenue levels in the world, undermining the government’s ability to improve service delivery.
