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World bank urges Nigeria to rethink petroleum subsidy

The World Bank has called on Nigeria to rethink its petroleum subsidy regime.

The President of the bank, David Malpass made the call at the ongoing Spring meetings of the International Monetary Fund (IMF) and World Bank in Washington DC, USA.

Mr Malpass said the current subsidy regime benefits people with higher income more, and sought a subsidy system that would be targeted at those at the lower wrung of the economic ladder.

The World Bank President also said Nigeria should abolish its multiple exchange rate system and embrace a single system that is market based as it would help to attract investments and promote stability.

He acknowledged the problems of insecurity confronting Nigeria and many parts of sub-Saharan Africa, which he said were exacerbated by flow of weapons from outside the continent.

Mr Malpass, however, said there were prospects for bright growth for Nigeria in view of its vast human and natural resources, but said this would only come about with improvement in policies.

Reporting by Biodun Dare; Editing by Daniel Adejo and Tony Okerafor