AGS NEWS – The World Bank has revealed that the Nigerian government lost N13.2 trillion in revenue due to its foreign exchange subsidy policy from 2021 to 2023.

This policy involved regulating the naira’s value in the official exchange market while allowing a different rate in the parallel market. The government lost N2 trillion in 2021, N6.2 trillion in 2022, and N5 trillion in 2023.

Finance Minister Wale Edun recently announced the end of fuel and foreign exchange subsidies, citing the financial strain they placed on the economy.

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The World Bank report highlighted that Nigeria’s revenue losses primarily affected sectors like oil, customs, and tax revenues.

The bank urged the government to maintain a unified foreign exchange rate to prevent further fiscal losses and improve the economy.

The removal of the foreign exchange subsidy in February 2024 has been credited with boosting the country’s revenue, significantly impacting fiscal consolidation.