The World Bank has projected that inflation may hit 25 percent in 2023 as a result of petrol subsidy removal.
This projection was contained in the June 2023 edition of the Nigeria Development Update.
However, the Washington-based bank noted that although there will be a significant increase in 2023, headline inflation will fall by the first quarter of 2024.
The report read;
“The removal of the petrol subsidy is anticipated to cause a temporary increase in inflation in the upcoming months before contributing to disinflation in the medium term.
“The price increases resulting from the subsidy removal will have a one-time impact on prices, primarily affecting petrol purchases for transportation, power generation, and certain services.”
