World Bank Advises FG, States to Stop Payment of Petrol Subsidy

James Emejo in Abuja

The Country Director of the World Bank, Shubham Chaudhuri, has asked the federal and state governments to consider the financial implications that a continuous fuel subsidy regime could have on their revenues, as the government contemplates the removal of fuel subsidy.

Chaudhuri gave the warning at the weekend on the third day of the induction programme for newly elected and re-elected governors at the Banquet Hall of the Presidential Villa in Abuja.

The World Bank official warned that the situation could get worse if the right decisions about the fuel subsidy regime are not taken.
He expressed concern over the rising debt profile of some states, warning that the situation could get worse, depending on the decision of the governments on the fuel subsidy regime.

The induction programme was aimed at intimating the governors-elect about the opportunities that exist with development partners, including grants, partnerships, and project sponsorships.

Issues around revenue generation, budgeting, and good governance dominated discussions that started on Monday, with some of the new inductees describing the orientation exercise as a good start for them.

The incoming and re-elected governors will have the responsibility of managing the resources of their respective states after they are sworn in on May 29.

The knowledge and experiences of former governors shared during the programme could be the launchpad for their successors.