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

Published

5 years ago

November 23, 2021

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.

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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Toyota Motor Show Roars into Lagos Tomorrow with Test Drives, Debates, Free Diagnostics, Others

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4 hours ago

June 1, 2026

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Toyota Motor Show Roars into Lagos Tomorrow with Test Drives, Debates, Free Diagnostics, Others

4-Day Festival Kicks Off June 2, No Admission Fees

If you have ever wanted to get behind the wheel of a Land Cruiser, grill a Toyota engineer, or win prizes while learning how your engine actually works, tomorrow is your day.

Toyota Nigeria Limited will throw open the gates for its annual Toyota Motor Show on Tuesday, June 2, 2026. And for four days, Lekki becomes the city’s biggest car park, debate stage, and hangout spot rolled into one. The show runs through Saturday, June 6, with a break on Friday, 5th June, according to the organisers, TNL.

Forget the usual “stand-and-stare” motor shows. TNL says it is going full experience:

Day 1: Tuesday, June 2 – See It, Drive It, Hear It
Doors open for open vehicle viewing. But the headline is _PodCARst_ going live – Toyota’s new podcast recorded on-site. First guest? Celebrity guest Soma, in conversation with execs. Think cars, culture, and no script.

Day 2: Wednesday, June 3 – Youth Takeover
This is for students and young professionals. Expect debate competitions, quiz battles, and hands-on workshops. Kate Henshaw, screen legend, will be on ground to meet fans and judge the action.

Toyota Motor Show Roars into Lagos Tomorrow with Test Drives, Debates, Free Diagnostics, Others

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Toyota By CFAO Launches 2026 RAV4 in Nigeria, Ends Long Wait for Latest Global Model

Published

12 hours ago

June 1, 2026

Trends Admin

2026 Toyota RAV4

Toyota By CFAO Launches 2026 RAV4 in Nigeria, Ends Long Wait for Latest Global Model

Toyota-by-CFAO Nigeria has unveiled the all-new 2026 Toyota RAV4, bringing the latest generation of the globally acclaimed SUV to the Nigerian market in a move that signals a new era for local vehicle buyers.

For the first time, Nigerian customers will have access to the same-generation RAV4 available in leading international markets, eliminating the years-long delay that has traditionally separated local buyers from global launches.

The new SUV is backed by a three-year manufacturer’s warranty, Toyota-certified after-sales support and nationwide access to genuine spare parts, with customer deliveries already underway.

Speaking at the unveiling, Managing Director of Toyota-by-CFAO Nigeria, Boye Ajayi, said the company was raising the benchmark for vehicle ownership in the country.

“The 2026 RAV4 is here. Nigerian customers are no longer waiting years behind global markets or settling for older specifications. They are receiving the same vehicle available internationally, at the same time, with full manufacturer support,” Ajayi said.

Available in three variants — Active (2.0L 2WD), Comfort (2.0L 4WD) and Limited (2.0L 4WD) — the SUV is powered by a 2.0-litre DOHC petrol engine producing 172 horsepower and features Sport, Normal and Eco driving modes.

Designed to balance comfort, performance and practicality, the RAV4 offers a 481-litre cargo space, 201mm ground clearance and a 55-litre fuel tank suited for both city commuting and long-distance travel.

Standard features across the range include Apple CarPlay and Android Auto connectivity, dual-zone climate control, LED headlamps, 18-inch alloy wheels, SmartKey keyless entry, push-button start and a rear-view camera.

Toyota also equipped the SUV with an extensive safety package, including Anti-lock Braking System (ABS), Electronic Brakeforce Distribution (EBD), Vehicle Stability Control (VSC), hill-start assist and multiple airbags.

Toyota By CFAO Launches 2026 RAV4 in Nigeria, Ends Long Wait for Latest Global Model

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Carloha Rides High, Plans New EV for Nigeria After Winning Global Honours

Published

2 days ago

May 30, 2026

Trends Admin

Carloha Rides High, Plans New EV for Nigeria After Winning Global Honours

Carloha Nigeria, the authorised dealer of Chery vehicles in Nigeria, is strengthening its position in the country’s automotive industry after clinching two prestigious global awards as it unveils plans to introduce another electric vehicle (EV) into the market.

iCAUR (iCAR) is a global youth-oriented electric vehicle brand under the Chery Group, which was developed in partnership with SmartMi Tech. The brand is focused on stylish designs and smart mobility and it is currently expanding across international markets.

Carloha Nigeria received the New Star Award and Brand Leap Contribution Award at the 2026 Chery Global Summit and Beijing International Automotive Exhibition in China. This is in recognition of its rapid market growth, brand development efforts and customer engagement initiatives.

The international recognition comes as Carloha intensifies its push into Nigeria’s growing EV space, buoyed by the positive reception of the iCAUR brand among motorists, technology enthusiasts and environmentally conscious consumers.

Managing Director, Sola Adigun, said the awards validate the company’s commitment to delivering world-class automotive solutions, while the growing acceptance of iCAUR reflects increasing consumer interest in innovative and sustainable mobility options.

“The Nigerian automotive market is evolving, and consumers are becoming increasingly receptive to innovation, sustainability and smart mobility solutions.

“The success of iCAUR has encouraged us to continue investing in the future of electric mobility in Nigeria,” he said.

Adigun disclosed that plans for the launch of a new EV are at an advanced stage, describing the move as part of a broader strategy to expand consumer choice and support Nigeria’s transition to cleaner transportation.

He added, “Winning these awards on the global stage is a strong endorsement of the work our team has done in building the Chery brand in Nigeria.

“It also demonstrates that Nigerian automotive businesses can compete successfully with the best across the world.”

According to him, Nigerian customers are increasingly demanding vehicles that combine intelligent safety technologies, premium comfort, fuel efficiency and modern design, noting that these qualities were prominently showcased by Chery at the Beijing exhibition.

“Beyond selling vehicles, our goal is to provide mobility solutions that meet the evolving needs of Nigerian families and businesses while aligning with global trends in sustainability, innovation and customer experience,” Adigun said.

At Auto China 2026, Chery also showcased its latest safety and intelligent mobility technologies, including the all-new TIGGO V and its AiMOGA robotics innovations, under its new global brand philosophy, “For Family.”
General Manager, Felix Mahan, said the awards underscore Carloha Nigeria’s commitment to excellence and customer satisfaction, adding that the company’s CarlohaCare 6-6-7 package continues to offer customers industry-leading aftersales support through a six-year warranty, six years of free service and a seven-day repair promise.
“This recognition reflects growing international confidence in both the Nigerian market and our ability to deliver world-class customer experience. We remain committed to making vehicle ownership easier, more affordable and more rewarding for our customers,” Mahan said.
With fresh global recognition and an expanded EV strategy, Carloha is positioning itself as one of the key players driving the future of sustainable mobility in Nigeria.