Former World Bank president David Malpass has expressed confidence in President Bola Tinubu’s ending of the fuel subsidy regime and scrapping of the dual exchange rates in Nigeria, saying it will help reduce corruption in Nigeria.
Sharing a Financial Times story on steps taken by Mr Tinubu’s government, Mr Malpass described the fuel subsidy regime and dual exchange rate as harmful to the Nigerian economy.
“Glad to see @officialABAT taking concrete steps to scrap Nigeria’s harmful government subsidies and multiple exchange rates,” Mr Malpass said in a tweet on Wednesday. “These are important steps toward currency stability, lower inflation, and reduced corruption in Africa’s most populous country.”
Mr Tinubu assumed office on May 29, declaring an immediate end to fuel subsidy.
“Subsidy is gone,” Mr Tinubu said in his inaugural speech, a development that saw fuel price skyrocket from N195 to N540.
A week after he assumed office, he also ordered the Central Bank of Nigeria to float the naira, allowing banks to determine exchange rates to the dollar and other foreign currencies.
Amid these developments, the president has suspended CBN governor Godwin Emefiele and EFCC chair Abdulrahseed Bawa and ordered investigations into their respective tenures.
Mr Tinubu also signed a student loan law with stringent conditions, allowing eligible students in higher institutions access loans for their education.
His actions so far have been applauded by analysts as welcome developments. However, Nigerians have been left to suffer the immediate adverse effects of fuel subsidy removal without any palliatives put in place.
