Higher oil prices have lifted Nigeria's export earnings, the World Bank says, but BusinessDay reported Oct. 20 that they could also raise the cost of a state-run petrol discount to 114 billion naira.
The month-old program operates through filling stations run by state-owned Nigerian National Petroleum Company Limited (NNPC), BusinessDay said. The outlet described the program as facing fiscal pressure and presented the 114 billion naira figure as a possible bill, rather than an amount already spent.
The World Bank has said higher oil prices increased Nigeria's export earnings and government revenue. It also identified higher fuel prices within Nigeria as one reason consumer inflation eased more slowly.
The discount comes amid a broader debate over fuel policy. President Bola Tinubu ruled out restoring Nigeria's petrol subsidy at a gathering of supporters Monday, BusinessDay reported. Tinubu has argued that subsidy spending should instead support infrastructure, education, health care and jobs. In a June 2023 address, he acknowledged that ending the subsidy would add to Nigerians' burden.
