There is a statement in the good book that says, “he who knows to do good and does it not has sinned”
So for the World Bank to criticised the underperformance of the Nigerian National Petroleum Corporation, some Nigerians are giving the bank a thumbs up
Lagos Chamber of Commerce and Industry (LCCI), has supported the World Bank’s criticism of the Nigerian National Petroleum Corporation (NNPC).
In the World Banks Nigeria Development Update report titled: “Turning the Corner, From Reforms and Renewed Hope to Results”
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What The LCCI Is Saying
The issue of the NNPCL’s underperformance and opacity was brought up in the report that was launched on December 13, 2023.
Despite the reforms carried out so far, LCCI Director-General, Dr Chinyere Almona, noted that there are concerns about Nigeria’s ailing economy.
The reforms include fuel subsidy removal, liberalisation of the foreign exchange market, and removal of 43 items from FX restrictions, among others.
“A detailed review of the report revealed that the key concerns in the Nigerian economy remain high inflation, revenue leakages, and challenges in the FX market.
Others are increased poverty due to the high cost of living, partial return of subsidy, and sub-optimal GDP growth,” she said.
“To increase government revenue, we advocate for far-reaching reforms and commitment on the part of the government.
Recommendations
There must be improved transparency and a comprehensive strategy to improve the performance of the enterprises, including privatisation options.
However, we do not support the immediate increase in value-added tax (VAT) due to its cost impact on consumers in the immediate term.”
On the partial return of subsidy, Almona said they support the views of the World Bank and the need to adjust petrol prices to reflect market conditions.
She added that over the years, they have consistently advocated for full and transparent deregulation of petroleum products.
She, however, expressed worry over the monopoly in the importation and supply of petroleum products by the NNPC and the lack of transparency in the pricing of the products.”
“The Chamber recommended that government should declare a state of emergency in the oil and gas production sector of the country.”
“Concerning the unstable FX market, they also recommended that the government must address the supply gap in the market.”
“In the medium term, the government must look for ways to ensure local production of basic household needs that are imported to reduce the huge demand for FX.
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Further, there is a need to build market confidence around free FX pricing and implement policies to channel FX supply into the market.”
She noted as well, that the World Bank and the recent Nigerian Bureau of Statistics (NBS) report, show a continued rise in inflation.
This rise will severely impact businesses, consumers’ income, spending, and savings as well as manufacturing productivity in the country.
“We urge the CBN to intensify its efforts to address the challenge by adopting the right policy mix and ensuring synergy with fiscal authorities.
