The International Monetary Fund (IMF) wednesday reiterated the need for Nigeria and other countries that still retain the policy of subsiding fossil fuel to put an end to the policy.


Precisely, the IMF said eliminating the policy which it pointed out, “typically benefit the rich more than the poor, could gain up to four per cent of global Gross Domestic Product (GDP).

Although the multilateral institution which stated this in a blog post titled: “Fuel for Thought: Ditch the Subsidies,” did not name any country, a recent World Bank report had shown that Nigeria spent N731 billion to subsidise petrol consumption last year. This is also the situation in some low income and developing countries.

But the IMF in the blog post pointed out that, “

Pensions, education, healthcare, better infrastructure, technology, and climate change: fiscal policymakers have their work cut out for them on many fronts. Whether you live in a rapidly aging advanced economy, or a low-income or emerging market economy with a young, booming population, all these issues matter for you.

“As the Fiscal Monitor in April 2019 shows, government policies on taxes and spending have to adapt and should shift to growth-enhancing investment. This means, for example, more money to build classrooms, hospitals and roads, while cutting wasteful spending, such as inefficient energy subsidies.

“Removing fossil fuel subsidies, which typically benefit the rich more than the poor, could gain up to 4 percent of global GDP in additional resources over the medium term to invest in people, growth, and help protect the most vulnerable.

“We define the subsidies—which amount to 6.5 per cent of GDP globally—broadly. The IMF’s calculations include both the government funding to artificially reduce the price of energy below cost (0.4 percent of global GDP) and the under taxation of fuel consumption (6.1 percent of global GDP), because energy consumption contributes to global warming, local pollution, increased traffic congestion and more accidents.”

It noted that monies spent on other priorities could help raise long-term economic growth, which it described as key ingredient to reduce the burden of high public debt.

“It can also spread economic benefits more widely within and across countries and help restore the public trust in institutions necessary for economic stability,” it added.

https://www.thisdaylive.com/index.php/2019/08/15/fuel-subsidy-removal-will-add-4-to-global-gdp-imf-tells-nigeria-others/amp/

IMF should stop shaking that table, at of cabal members are feasting on fuel subsidy.

I have my opinion, the 4% addition will be to whose pockets? Why under normal economic condition removing subsidy should improve govt incomes and translate to infrastructural and economic growth that will bring more opportunities, Nigeria is unfortunately not operating a normal economy. The strong arm pf graft reach to everywhere and half of the money will end up in corrupt pockets and may be a third of the remaining half will end up in inflated contracts and padded budgets etc.
I feel the tendency for inflation is too high for the poor population and the over 90million people earning under $1 a day. Those advocating for subsidy removal have strong points but are yet to really present the effect on the common man

Subsidy is awake again

Thoss in power dont care. You want take away food from their mouth ?

Mynd44 was here Lalasticlala

The policies of these Western imperialists is just to continue to hold third world countries to eternal indebtedness.

Racoon:
The policies of these Western imperialists is just to continue to hold third world countries to eternal indebtedness.

And we have leaders who ate too selfish to their own destruction

let me wait for that stupid suya aboki rotten brain to comment.

we no dey remove subsidy na by force? Subsidy is not removed people are complaining that the cost of fuel is expensive,not to talk about when it is removed.

IMF since IBB days, I was in school young then.