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The Nigeria Labour Congress has asked the Federal Government not to increase the price of petroleum to ₦750 per litre as advised by the World Bank.
On Wednesday, November 13, 2023, the bank said the current price of petrol is pegged between ₦620 and ₦650 per litre because the Federal Government subsidises the commodity.
Speaking during his presentation of the Nigeria Development Update, December 2023 Edition, the World Bank’s lead economist for Nigeria, Alex Sienaert, asked the government to completely remove subsidy payment on fuel and increase petrol price to N750.
“It does seem like petrol prices are not fully adjusting to market conditions. So, that hints at the partial return of the subsidy if we estimate what is the cost reflective of the retail PMS price of the would-be and assume that importation is done at the official FX rate.
“Of course, the liberalisation is happening with the parallel rates, which is the main supplier, the price would be even higher. These are just estimates to give you a sense of what cost-reflective pricing most likely looks like.
“We think the price of petrol should be around ₦750/litre more than the ₦650/litre currently paid by Nigerians,” he said.
Sienaert’s position on the purported reintroduction of fuel subsidy aligns with the sentiment of oil marketers.
The marketers had recently maintained that petrol should be selling for ₦1,000 per litre had the government not subsidised it.
However, the government has dismissed the claim by the bank and petrol marketers on the reintroduction of subsidy for petrol.
Reacting to the World Bank’s proposal, the NLC's Head of Information, Benson Upah, in an interview with ThePunch said any further increase in the price of fuel would lead to anarchy in the country.
Upah described the bank as a predatory institution, adding that the institution does not care about the welfare of Nigerians.
He said, “The World Bank is globalist north in thoughts and actions and has little or no consideration for the global south. It is a predatory institution that the global north uses to justify its crimes against the south.
“It is almost single-handedly responsible for the ruination of the economies of countries of the global south for which it prescribes one solution for all ailments.
“It does not care what happens to Nigeria or Nigerians so it could from its perch in Washington say whatever it likes or push around our leaders like house-helps.
“The truth, however, remains that the present regime of the pump price of PMS has all but destroyed the country. To now ask the government to raise it to ₦750/litre is to invite anarchy upon the land.
He urged the government to ignore the World Bank's proposal and focus on its promise to fight corruption in the downstream sector of the petroleum industry.