Softly, Softly

Nigeria’s accelerating inflation puts the skids on plans to end fuel subsidy

By David Whitehouse

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Posted on April 21, 2023 11:12

Cars queue to buy petrol at the NNPC Mega petrol station in Abuja, Nigeria March 19, 2020. REUTERS/Afolabi Sotunde

The upward march of Nigerian inflation means that scrapping the fuel subsidy in one go is unlikely to be viable, economists say.

The country in April secured an $800m loan from the World Bank to cushion the end of the universal support. The government of outgoing President Muhammadu Buhari has committed to ending the subsidy before handing over power in May, while president-elect Bola Tinubu has said he will scrap the payments.

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