The report highlighted that the removal of petrol subsidy and the unification of foreign exchange rates had intensified the cost of living pressures, leading to an increase in the number of Nigerians living in poverty.

Despite acknowledging the Federal Government’s “bold reforms” as necessary to rescue Nigeria from a fiscal cliff, the World Bank noted that the current hardships were temporary.

The report emphasized that Nigeria is on the path to recovery but not yet out of the woods due to ongoing policies implemented by both fiscal and monetary authorities.

The World Bank urged the Nigerian National Petroleum Company Limited (NNPCL) to publicly disclose its statement of accounts and transparently reveal its revenue inflows.

The report specifically called for detailed financial statements and revenue flows from NPPC to safeguard fiscal savings from subsidy reform and ensure that oil revenues contribute to the Federation Account.

Shubham Chaudhuri, World Bank Country Director for Nigeria, highlighted that between N300 billion and N400 billion were spent monthly on fuel subsidy.

He expressed the expectation that NNPCL should have been contributing such amounts to the Federation Account, which has not been the case.

Chaudhuri emphasized that the petrol subsidy and forex management reforms are crucial steps in improving Nigeria’s economic outlook, calling for coordinated fiscal and monetary policy actions in the short to medium term.

This directive has resulted in a significant increase in the I&E window exchange rate, which rose to N610 per dollar as of 12:50 pm, compared to N471.67 the previous night.

Although the CBN has not officially released a statement regarding this matter, two banking executives have confirmed the authenticity of the directive, Vanguard reports.

Nnamdi Nwizu, an investment banker and Co-founder of Comercio Partners, expressed that the immediate consequences of this directive include an influx of foreign exchange into the economy and a further surge in the inflation rate, as evidenced by the sharp increase in the I&E window exchange rate today.

CBN Governor, Godwin Emefiele made this known in Abuja after the Monetary Policy Committee’s (MPC) two-day meeting.

Emefiele, stated that the MPC also retained the Monetary Policy Rate at 11.5 per cent at the end of the meeting.

It also retained the Cash Reserve Ratio and Liquidity Ratio at 27.5 per cent and 30 per cent respectively.

Other decisions taken by the CBN regarding Forex transactions include stoppage of issuance of new licenses for BDCs, which will also affect existing applications for BDC licenses.

Emefiele said, “The MPC made the decision to hold all parameters constant. The committee thought by unanimous vote to retain the Monetary Policy Rate at 11.5 per cent.

“In summary, MPC voted as follows, one, retain MPR at 11.5 per cent; retain the asymmetric corridor of +100/-700 basis points around the MPR; retain the CRR at 27.5 per cent; and retain the Liquidity Ratio at 30 per cent.”

On the decision to stop forex sales to the BDCs, Emefiele said the BDCs had defeated their purpose of existence to provide forex to retail users, but instead, they had become wholesale and illegal dealers.

”We observed that the BDCs have continued to make huge profits while Nigerians suffered in pain.

”The commercial banks would be monitored to provide forex for the legitimate use of Nigerians.

“The Central Bank will henceforth discontinue the sale of forex to Bureau de Change operators,” Emefiele added.