The World Bank says that subsidies benefit only rich households and reduce government spending on poor Nigerians.
The bank says Nigeria’s resources had been consumed by inefficient and regressive subsidiaries on petrol, electricity, and foreign exchange.
It added that the subsidies were far more than what was spent on education, health, and social protection in 2021.
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.