Nigeria has secured an $800 million relief package from the World Bank to help cushion the impact of a plan to remove a long‑held fuel subsidy in June. Finance Minister Zainab Ahmed announced on Wednesday that the funds would be disbursed as cash transfers to 10 million households. She told journalists at the State House, after a weekly Cabinet meeting, that the money is ready for distribution, though she did not specify the amount each beneficiary would receive. “We’re on course,” Ahmed said on TVC News. “We made that provision to enable us to exit the fuel subsidy by June 2023. We’ve secured funding from the World Bank. This is the first tranche of the palliatives that will allow us to give cash transfers to the most vulnerable in our society.”
In addition to cash assistance, the government is developing non‑cash interventions, including a mass‑transit system to ease daily commutes for workers. Ahmed said authorities are working with the incoming administration to implement these measures. The ruling‑party candidate, Bola Ahmed Tinubu, was declared the winner of February’s presidential election and will be sworn in next month, though it remains unclear whether his government will discontinue the subsidy program. Nigeria currently spends more than $850 million each month on fuel subsidies, according to the Nigerian National Petroleum Company Limited.
The previous government’s decision to halt the costly subsidy sparked mass protests and unrest across the country. Emmanuel Afimia, head of Enermics Consulting Limited, estimated that each household might receive roughly 60,000 naira, but he expressed doubts about the program’s execution: “Once that is exhausted, what’s next? How do they intend to select the 10 million households? Who’s sure that the 10 million households will receive this package? I just don’t believe it.”
Nigeria is one of Africa’s leading crude‑oil producers but has struggled to curb oil theft and revive local refineries. The Independent Petroleum Marketers Association of Nigeria warned that the country must commence local refining before removing subsidies to keep petroleum‑product costs affordable. Afimia noted that citizens have already become accustomed to fuel shortages and price hikes, adding, “People have bought fuel at ridiculous prices in December and January. So, if the subsidy is finally removed by June and the price goes up, Nigerians may frown, but it won’t be as bad.”
The nation is also reeling from controversial elections and a cash crunch caused by a currency‑reform policy that took effect in January. This week, the World Bank warned that the incoming government faces weak growth and multiple policy challenges.
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