Kill subsidy, cut CBN loans, raise ‘sin’ taxes… 7 things World Bank wants Buhari to do in 2022 - Newstrends
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Kill subsidy, cut CBN loans, raise ‘sin’ taxes… 7 things World Bank wants Buhari to do in 2022

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Buhari's Govt Was Weakened by Sycophants Who Betrayed His Trust, Says Ex-DSS Boss

The World Bank on Tuesday released its November 2021 Nigeria Development Update, which showed — among other things — that eight million Nigerians fell into poverty in less than two years as a result of inflation shocks.

The report also revealed that Nigeria no longer benefits from high oil prices, with record low revenues, and exorbitant fuel subsidies, which makes Nigeria the only country in the world granting universal price petrol subsidies.

Also, the report reiterated that Nigeria has the worst revenue-to-GDP ratio among 115 countries monitored by the World Bank. Worse than Haiti.

To address the grim picture of Nigeria’s economy going into the future, the World Bank has recommended a number of policy decisions for the Muhammadu Buhari administration and the Central Bank of Nigeria (CBN) starting from the year 2022.

The Cable brings you a summary of the policy recommendations from the 112-paged Nigeria Development Update.

RAISE TAXES ON SINFUL GOODS

The World Bank recommended that the government raises taxes on what it referred to as “sinful goods,” including cigarette, alcohol, sugary drinks.

The bank said FG has “accelerated efforts to diversify its revenue stream; however, risks to the implementation of these reforms remain high”.

“These reforms include improving tax administration, especially for VAT, while also undertaking some significant policy reforms, such as implementing a levy on electronic money transfers, and additional excise taxes on alcohol and tobacco

“While these reform efforts are expected to generate additional revenues of over ₦ 3 trillion a year, they may be challenging to politically implement in the run up to the national elections, planned for 2023.”

Despite the perceived difficulties, the bank advised that FG increase these taxes in order to generate adequate revenue.

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KILL FUEL SUBSIDIES

Fuel subsidy removal has been a recurrent recommendation in World Bank/IMF policy briefs for Nigeria for more than a decade, but little has been done about this.

In this report, the World Bank has asked the government to remove subsidies, again. The bank argues that the poorest Nigerians do not benefit much from the subsidy regime.

“Nigeria is the only country in the world with a universal price subsidy that applies exclusively to PMS. Universal price subsidies for liquid fuels are almost always regressive, as the rich consume far more fuel than the poor,” the report read.

“PMS subsidies are especially regressive because PMS is used primarily in light- and medium-duty motor vehicles, which are rarely owned by the poor. Since raising PMS prices tends to have minimal adverse effects on poor households, governments worldwide have typically prioritized eliminating PMS subsidies over those that apply to other fuels.

“However, Nigeria has done the opposite—eliminating all subsidies for liquid fuels other than PMS. Moreover, the Nigerian PMS subsidy is exceptionally generous, and in October 2021 the PMS pump price was the seventh-lowest among 168 economies surveyed at just ₦495 per liter”

The bank said the poorest 40 percent of Nigerians consume less than 3 percent of the total PMS consumption in Nigeria.

CUT LOANS FROM CBN

The World Bank said in its projections for Nigeria, that if current debt accumulation levels are maintained, the country’s debt-to-GDP ratio will hit 40 percent by 2025.

The bank, therefore, advised that the Buhari-admin cut back on its request for overdrafts from the CBN through the Ways and Means financing system. The bank asked FG to keep overdrafts to levels stipulated by law.

“Faced with a widening budget deficit, policymakers have increasingly turned to costly CBN overdrafts (also known as Ways and Means financing), which are not properly integrated into the fiscal accounts.

“While Nigeria’s debt burden remains manageable for the time being, maintaining sustainable debt dynamics will require curbing the use of CBN financing for the deficit and addressing fiscal pressures to break the cycle of low growth and rising public debt.”

FIX FOREX POLICY

“The current mix of monetary, fiscal, foreign exchange (FX), and trade policies also plays a prominent role as a driver of inflation,” the World Bank said. The bank recommended that fixing inflation will need some solution from forex management.

“Trade and FX restrictions, including the closure of land borders starting in August 2019, have increased prices for food and consumer goods, and imports of over 40 goods, including many staple foods, are currently ineligible for FX through formal windows.

“Nigeria’s exchange-rate management has resulted in the rise of parallel rates, which are closely linked to food-price dynamics.”

To address inflation, the bank recommended enhancement of the “flexibility and predictability of exchange rate management”. It also asked that all land borders be fully open for trade.

BUILD THE DIGITAL ECOSYSTEM

“One leading barrier is Nigeria’s underdeveloped fixed broadband infrastructure, which is partly attributable to burdensome Federal and State regulations,” the World Bank diagnosed.

“This weak infrastructure base creates a ripple effect across the economy, contributing to low levels of financial inclusion, and persistent geographic and gender gaps in access to and use of digital technologies.

“Conflicts, particularly in the north, exacerbate these challenges, due to heightened security risks. By investing in its digital infrastructure and strong foundational ID systems, Nigeria can promote economic development, security, governance, and efficient delivery of services, thereby accelerating progress toward an inclusive digital economy.”

The bank advised Nigeria to build digital public platforms, digital financial services, digital entrepreneurship, digital skills, and digital infrastructure.

PROTECT THE POOR

When subsidies are removed, the World Bank forsees some inflation, which would affect the poor and vulnerable. The bank is therefore calling on the government to fix this by protecting the poor.

“Implement a large-scale (covering 25% to 50% of the population) and time-bound targeted cash-transfer program to mitigate impacts of high inflation and the PMS subsidy removal,” the bank said.

It also called on government to “redirect savings from PMS subsidy to finance primary health, basic education, and rural connectivity projects”.

The bank said that the government in 2022 has planned to spend ~N3,000 per person per year on health while fuel subsidies could cost N13,000 per person per year in the same year”.

It called on the government to rearrange its priorities to shield the poor from bearing the burden of the subsidy removal.

SPEED UP PORT CLEARANCE

The World Bank advised that the government “reduce delays in border and port clearance by simplifying and harmonizing
documents, streamlining, automating procedures, and introducing risk-based customs interventions.”

This would entail spending up the processes of import at the popular Apapa Port, which is the busiest in the country, and one of the least efficient on the continent.

The Cable

 

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NRC Denies Ticket Racketeering, Says Abuja-Kaduna Rail Demand Exceeds Seats by 10-Fold

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NRC Denies Ticket Racketeering, Says Abuja-Kaduna Rail Demand Exceeds Seats by 10-Fold

 

The Nigerian Railway Corporation has denied allegations that it deliberately creates artificial scarcity of tickets on the Abuja-Kaduna Train Service to facilitate their resale at exorbitant prices, blaming the persistent shortage on surging passenger demand and the activities of ticket touts exploiting the system.

The corporation, in a statement signed by its Chief Public Relations Officer, Callistus Unyimadu, said demand for rail services on the corridor had exceeded available capacity by more than 10 times, creating a severe imbalance between the number of passengers seeking tickets and the limited seats available.

The clarification followed a viral social media video by Instagram blogger Faizah Raji, operating under the handle @wearegst, who accused the NRC of withholding tickets from its official electronic booking platform and reselling them through unnamed agents at prices reportedly twice the approved fares.

However, the NRC described the allegations as misleading, insisting that the corporation neither buys nor sells train tickets but facilitates passenger access to the railway service through approved ticketing arrangements.

According to the management, Raji had acknowledged in her account that the corporation warned passengers to purchase tickets exclusively through authorised platforms but subsequently bought a ticket from an agent after failing to secure one through the official portal.

The NRC said while her experience might be genuine, patronising unofficial ticket sellers despite repeated warnings did not establish the corporation’s involvement in the alleged racket.

It warned passengers that tickets obtained through unauthorised agents, particularly those purchased with another person’s identification details, could be invalid and expose travellers to financial losses or denial of boarding.

The corporation explained that electronic ticketing across its standard-gauge railway operations was handled by private concessionaires under public-private partnership arrangements approved by the Infrastructure Concession Regulatory Commission and the Federal Executive Council before 2023.

It identified SecureID/TPS as the ticketing service provider for the Abuja-Kaduna Train Service, Global Software Digital Solutions for the Lagos-Ibadan Train Service, and Fane Warri-Itakpe Ticketing Solutions Limited for the Warri-Itakpe Train Service.

 

NIN verification introduced to combat ticket fraud

The NRC traced the growing challenge of ticket racketeering to fraudulent practices that persisted despite measures introduced to strengthen passenger identification and railway security.

It said the government introduced the use of the National Identification Number as a condition for purchasing train tickets following the 2022 train attack, partly to curb ticket racketeering.

However, according to the corporation, fraudsters subsequently devised ways of obtaining multiple NINs to purchase tickets in bulk for resale to unsuspecting passengers.

To tackle the practice, the NRC introduced an additional verification procedure in 2025, modelled on the system used at the Murtala Muhammed International Airport Terminal 2 in Lagos.

Under the arrangement, passengers’ NIN details are checked against the information used to purchase their tickets, while personal identification cards are also required before boarding.

The corporation said its verification system at Idu and Kubwa in Abuja, as well as Rigasa in Kaduna, is integrated with the National Identity Management Commission database, enabling officials to retrieve the photograph associated with the NIN used for a ticket purchase.

This, it explained, helps officials identify passengers attempting to travel with tickets purchased using another person’s identity.

The NRC, however, acknowledged that security challenges at the Rigasa station, which it described as having been hurriedly adopted, had occasionally made enforcement difficult because of limitations in its access-control infrastructure.

 

NRC vows crackdown on racketeering

Despite the challenges, the corporation declared zero tolerance for ticket racketeering, warning that any employee found participating in or colluding with fraudulent ticket sellers would face summary disciplinary action.

It also said the electronic ticketing concessionaires had been directed to improve the accessibility and ease of use of their booking platforms to ensure passengers could obtain tickets more conveniently while complying with established procedures.

The management maintained that the growing preference for train travel among Nigerians had placed considerable pressure on available capacity, reinforcing the need for passengers to use only approved booking channels.

It described the purchase of tickets through third parties using another person’s NIN or name as unacceptable and an act of economic sabotage that undermines the integrity of the railway system.

The corporation assured passengers that it remained committed to improving customer service, strengthening security and ensuring that rail travel became a preferred alternative for Nigerians.

It reiterated its commitment to providing safe, affordable, reliable and convenient train services across the country’s railway corridors while intensifying efforts to prevent criminal activities and protect the corporation’s reputation.

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Naija Driver 2026: Online CBT Screening Holds today 

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Naija Driver 2026: Online CBT Screening Holds today 

 

LAGOS, NIGERIA — The race to identify Nigeria’s safest and most skilled drivers enters a decisive phase today, Saturday, October 17, as registered candidates nationwide prepare for the 11am online computer-based test (CBT) screening of the inaugural Nigerian Drivers Challenge, Naija Driver 2026.

The organisers have urged candidates to log in prepared, with a functional laptop or desktop computer, webcam and reliable internet connection, warning that smartphones and tablets will not be supported for the 20-minute, 40-question examination.

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Tesla’s Flying Roadster Rekindles Race to Put Cars in the Sky

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Tesla’s Flying Roadster Rekindles Race to Put Cars in the Sky

Tesla chief executive Elon Musk has brought the prospect of putting cars in the sky back to the spotlight with the unveiling of the company’s Roadster sports car. The demonstration, staged at a SpaceX facility in Texas, has reignited the debate over whether flying cars could fundamentally change how people and goods move—or whether they will remain expensive technological curiosities for wealthy enthusiasts.
Analysts note that getting a vehicle briefly off the ground is not the same as developing a practical aircraft that can transport people safely over meaningful distances, land in confined spaces and remain usable on ordinary roads.
And that is where the real challenge begins.

At the centre of the latest excitement is Tesla’s next-generation Roadster, a high-performance electric sports car equipped with technology developed in collaboration with SpaceX, Musk’s aerospace company.

During the October 15 demonstration in Texas, the vehicle performed a series of dramatic manoeuvres, including launching into the air, flipping and landing, using a system of compressed-air thrusters. Tesla also showcased a suction-based system that allowed it to perform an extraordinary stunt on a ramp. The company claims the car can accelerate from zero to 60 miles per hour in less than a second.

The spectacle was designed to demonstrate what happens when automotive engineering meets rocket technology. Musk described the project as a collaboration between what he called the world’s best car company and the world’s best rocket company.

However, the demonstration did not establish that the Roadster can sustain conventional flight, travel long distances through the air or operate as an everyday flying vehicle.

That distinction is central to the debate.

The vehicle’s production is planned for 2028, but the promised timeline, technical capabilities and regulatory pathway remain matters to watch. Tesla has previously revised its Roadster production schedules, making the latest target one that prospective buyers will need to treat cautiously.

For now, the Roadster is better understood as a demonstration of extraordinary engineering ambition than proof that flying cars are ready to transform daily commuting.

The technology is already taking shape

Tesla is not alone in pursuing the dream of personal flight. Across the aerospace and automotive industries, companies are developing vehicles that can take off and land vertically, potentially eliminating the need for conventional runways.

These machines are commonly known as electric vertical take-off and landing aircraft, or eVTOLs. Depending on their design, they use multiple electric propellers, rotors or other lifting systems to rise vertically before transitioning into forward flight.

Unlike a conventional flying car that must also function as a road vehicle, many eVTOLs are designed primarily as aircraft. Their intended uses include urban air taxis, airport transfers, medical transport and short-distance passenger services.

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One of the companies pursuing a road-and-air vehicle is California-based Alef Aeronautics. Its Model A project uses distributed propellers to lift the vehicle, illustrating a different approach from Tesla’s rocket-assisted demonstration.

The wider industry is also attracting regulatory attention. In the United States, the Federal Aviation Administration has established rules covering pilot qualifications and operations for powered-lift aircraft, creating a framework for the introduction of new types of vertical-flight transportation. Certification of individual aircraft and safe integration into airspace remain essential steps.

The implication is significant: flying transportation is no longer merely an imaginative concept. But the most practical early applications may be specialised aircraft operating along defined routes, rather than private cars routinely switching between roads and skies.

Why building a flying car is so difficult

The biggest obstacle is not simply making a vehicle leave the ground. It is combining the conflicting requirements of a road car and an aircraft without compromising either.

A car must be sturdy enough to withstand collisions, potholes and the daily stresses of road use. It needs a chassis, crash-protection structures, tyres, suspension and other components that add weight.

An aircraft must be designed around weight, lift, stability, energy efficiency and control. Every extra kilogram can affect how much energy is needed to take off and remain airborne.

Combining the two creates a difficult engineering compromise.

A flying car must also manage the transition between ground travel and flight. Engineers have to ensure that the vehicle remains stable as it lifts off, changes direction and returns to the ground. A failure during that transition could have catastrophic consequences.

The Tesla demonstration offers a glimpse of what thrust technology can achieve, but a brief airborne manoeuvre does not answer the harder questions about sustained flight, passenger safety, weather resistance, emergency landing and repeated everyday use.

Battery performance presents another challenge for electric flying vehicles. Taking off vertically demands considerable power, while maintaining safe flight requires sufficient energy reserves. Designers must balance passenger capacity, range, payload and operating costs.

Then comes the question of price. A machine carrying sophisticated aviation systems, advanced batteries and road-safety equipment is unlikely to match the cost of an ordinary family car in its early years.

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These challenges explain why the first commercially successful flying vehicles may be aircraft that serve specific transport needs, rather than universal replacements for cars.

Will flying cars end traffic congestion?

The promise of flying cars is particularly attractive in cities such as Lagos where road congestion consumes hours of people’s lives and imposes substantial economic costs.

In principle, moving some journeys into the air could shorten travel times between distant urban centres, business districts, airports and industrial locations. Electric air taxis could offer faster alternatives for passengers willing to pay a premium.

Yet the idea that everyone will soon fly above traffic is less convincing.

Cities cannot allow thousands of privately operated aircraft to take off and land wherever their owners choose. Flight paths, separation distances, weather conditions, emergency procedures and air-traffic management would all have to be coordinated.

Landing infrastructure is another constraint. Even aircraft capable of vertical take-off need suitable places to land, recharge or refuel, undergo maintenance and accommodate passengers.

For flying cars that are also road-legal, owners would still need somewhere to park and drive. A vehicle that takes off from one location but cannot land safely near its destination may offer little practical advantage.

Noise could also become a concern, particularly for residents living near vertiports and frequently used flight corridors.

Consequently, the first generation of urban flying transport is more likely to resemble a carefully managed air-taxi network than an unrestricted skyway for private motorists.

Could flying cars become affordable?

Cost may ultimately determine whether flying vehicles transform transportation or remain a luxury reserved for a small group of buyers.

Early models are likely to carry substantial costs associated with advanced engineering, certification, insurance, maintenance and specialised training. Even when a vehicle can be operated without a conventional runway, its aviation-related requirements will distinguish it from an ordinary car.

The more promising business model may therefore involve shared use.

Instead of buying an expensive flying vehicle, passengers could book an air taxi for particular journeys. Operators could spread the cost of aircraft, maintenance and infrastructure across multiple trips.

As manufacturing scales up and technology improves, some costs may fall. But cheaper batteries and more efficient motors alone will not resolve every challenge involving certification, safety, infrastructure and public acceptance.

Tesla’s Roadster could still influence the industry by attracting attention to new propulsion technologies and encouraging competition. Its immediate significance, however, is more likely to be technological and symbolic than a mass-market transportation breakthrough.

What does the future hold for Nigeria?

For Nigeria, the emergence of flying vehicles presents both opportunities and questions.

Lagos offers an obvious illustration of the problem such technology seeks to address. Heavy congestion along major routes, including the Lekki-Epe corridor and key approaches to the island business districts, creates demand for faster and more predictable transport options.

Abuja, with its expanding urban footprint and relatively long journeys between some residential, administrative and commercial districts, could also eventually find specialised aerial mobility useful.

Potential applications extend beyond executive travel. Subject to safety, cost and regulatory approval, future vertical-flight aircraft could support emergency medical transfers, time-sensitive cargo delivery and connections between airports and business centres.

But Nigeria would need more than imported aircraft to develop a sustainable flying-mobility ecosystem.

The country would require appropriate aviation regulations, trained personnel, reliable charging or energy infrastructure, approved landing facilities, maintenance capabilities and effective airspace coordination. Affordability would be especially important in a market where many commuters depend on public transport and conventional road-based mobility.

The Nigerian Civil Aviation Authority would have a crucial role in determining how emerging aircraft technologies could be certified and operated locally, in line with applicable national requirements and international aviation standards.

There may also be opportunities for local engineering firms, technology companies and transport operators to participate in infrastructure development, maintenance and specialised mobility services.

Nevertheless, the business case would have to be demonstrated. A flying taxi that saves time but costs many times more than a road journey would initially serve a limited market.

For Nigeria, the most realistic starting point may be specialised commercial operations, rather than privately owned flying cars becoming a common sight over major cities.

The flying car remains an intriguing glimpse of the future—one with the potential to reshape mobility, but not yet a replacement for the familiar car on the road.

Tesla’s Flying Roadster Rekindles Race to Put Cars in the Sky

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