Investor Presentaiton
IT IS CRITICAL TO CHOOSE HOW SAVINGS FROM REFORMS WILL BE USED
To maximize the impact of the petrol subsidy reform
Paying off subsidy arrears to NNPC will reduce the
fiscal savings for 2023...
Naira, billions
...and if the government undertakes large new expenditures
the fiscal situation for 2023 could rapidly deteriorate again
Fiscal gains from
4,500
subsidy removal
Payment of
and FX reforms
subsidy
4,000
3,906
arrears
3,500
3,000
2,500
2,000
1,500
1,000
-2,800
500
0
NIGERIA
THE WORLD BANK
IBRD ⚫IDA | WORLD BANK GROUP
Percent of GDP
0.0
2022
2023
2024
2025
-1.0
-2.0
-3.0
-4.0
Savings for
Fiscal balance
use by the
-5.0
Federation
1,106
-6.0
-7.0
-8.0
Source: World Bank estimates based on NNPC and BOF data
Fiscal balance including payment
of NNPC arrears
Fiscal balance including
payment of NNPC arrears
and higher wage bill
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