Turning the Corner: A New Compact between Nigeria's People and State
FACED WITH A FRAGILE ECONOMIC SITUATION, THE ADMINISTRATION
INITIATED CRITICAL MACRO REFORMS
PETROL SUBSIDY REMOVED
FX MANAGEMENT REFORMED
U.
FGN removed the petrol subsidy, which was
costly (2.2% of GDP in 2022), opaque, and
regressive
The subsidy reduced the oil revenues
transferred to the Federation Account
Due in large part to the subsidy, since 2021, the
Nigerian economy was effectively unable to
benefit from rising global oil prices
N
$
To unwind FX distortions, CBN unified the
multiple official FX windows and committed to
a willing-buyer-willing-seller principle in the
newly unified NAFEM
CBN began to clear the backlog of FX
obligations
To improve the FX market and lower prices,
CBN also lifted FX restrictions on 43 imported
product categories
NIGERIA
THE WORLD BANK
IBRD ⚫IDA | WORLD BANK GROUP
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