Subsidy Removal: Inflation in Nigeria may hit 25 percent – World Bank

The World Bank has projected that inflation may hit 25 percent in 2023 as a result of petrol subsidy removal.

This projection was contained in the June 2023 edition of the Nigeria Development Update.

However, the Washington-based bank noted that although there will be a significant increase in 2023, headline inflation will fall by the first quarter of 2024.

The report read; “The removal of the petrol subsidy is anticipated to cause a temporary increase in inflation in the upcoming months before contributing to disinflation in the medium term. The price increases resulting from the subsidy removal will have a one-time impact on prices, primarily affecting petrol purchases for transportation, power generation, and certain services.

Punch/Hauwa Abu