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Stop Electricity Subsidy, IMF Tells FG - Politics - Nairaland

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FG Removes Electricity Subsidy Quietly, Petrol In Phases / IMF Tells FG To Remove Electric And Fuel Subsidies, Give More Jobs / Return Of Fuel Subsidies Disturbing, IMF Tells FG (2) (3) (4)

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Stop Electricity Subsidy, IMF Tells FG by TouchNfollow(f): 6:57am On May 13
The International Monetary Fund has warned the Nigerian government to remove what it called implicit fuel and electricity subsidies.

In a report published recently by the IMF, the organisation told Nigeria that the subsidies would guzzle three per cent of the nation’s Gross Domestic Product in 2024 as against one per cent in the year before.

According to the report, the IMF commended the Federal Government for, among other things, phasing out “costly and regressive energy subsidies”, saying this was critical to creating fiscal space for development spending and strengthening social protection while maintaining debt sustainability.

President Bola Tinubu’s administration removed fuel subsidies during his inauguration on May 29, 2023.

IMF noted, however, that “adequate compensatory measures for the poor were not scaled up promptly and subsequently paused over corruption concerns. Capping pump prices below cost reintroduced implicit subsidies by end-2023 to help Nigerians cope with high inflation and exchange rate depreciation.”

The body also acknowledged that the price of electricity had tripled for high-use premium consumers on Band A feeders, 15 per cent of the 12 million customers who account for 40 per cent of electricity usage.

As Nigerians agitate for the reversal of the Band A tariff from N206.80 per kilowatt-hour to N68, IMF submitted that “the tariff adjustment will help reduce expenditure on subsidies by 0.1 per cent of Gross Domestic Product, while continuing to provide relief to the poor, particularly in rural areas”.

The IMF advocated that “once the safety net has been scaled up and inflation subsides, the government should tackle implicit fuel and electricity subsidies”.

It warned, “With pump prices and tariffs below cost-recovery, implicit subsidy costs could increase to 3 per cent of GDP in 2024 from 1 per cent in 2023. These subsidies are costly and poorly targeted, with higher income groups benefiting more than the vulnerable”.

The IMF reechoed that “as inflation subsides and support for the vulnerable is ramped up, costly and untargeted fuel and electricity subsidies should be removed, while, e.g., retaining a lifeline tariff”.

It projected that the implicit fuel subsidy could gulp as high as N8.4tn in 2024 from N1.85tn in 2023, N4.4tn in 2022, N1.86tn in 2021 and N89bn in 2020.

The electricity subsidy being paid to customers under Band B, C, D, and E was projected to stand at N540bn by the end of 2024.

The PUNCH reports that the Nigerian National Petroleum Company and the Minister of State for Petroleum (Gas), Heineken Lokpobiri, have repeatedly debunked claims that the Federal Government was paying fuel subsidies through the back door.

Meanwhile, the IMF’s call for the removal of electricity subsidy is coming amid protests from Nigerians who are calling on the Minister of Power, Adebayo Adelabu, to return the Band A tariff to the status quo.

The organised labour has threatened to stage a protest on Monday if Adelabu fails to heed their calls.

https://punchng.com/stop-electricity-subsidy-imf-tells-fg/#google_vignette

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Re: Stop Electricity Subsidy, IMF Tells FG by Oxb90: 7:01am On May 13
Tun....da faya IMF

134 Likes 7 Shares

Re: Stop Electricity Subsidy, IMF Tells FG by Racoon(m): 7:03am On May 13
Wait o! It is IMF that is ruling in Nigeria now?

203 Likes 12 Shares

Re: Stop Electricity Subsidy, IMF Tells FG by B3sty(m): 7:04am On May 13
IMF seem to be the one running the affairs of the Country right now...

149 Likes 8 Shares

Re: Stop Electricity Subsidy, IMF Tells FG by SpecialAdviser(m): 7:04am On May 13
IMF has been pressing APC mumu button from time immemorial knowing the government is a BATeria bala blu.

140 Likes 3 Shares

Re: Stop Electricity Subsidy, IMF Tells FG by Lanretoye(m): 7:07am On May 13
Show us where imf said it.

1 Like

Re: Stop Electricity Subsidy, IMF Tells FG by Dpharisee: 7:11am On May 13
IMF controls Tinubu's Govt, see where it has led us, so much suffering in the land. I don't know any country in the world that became developed and advanced following IMF advice bumper to bumper.

Let's try out our own homegrown Economic models propounded by local economists (not Brettonwoods trained) just like a part of the country believes so much on their homegrown apprenticeship program which has helped them so much, you make mistakes you adjust next time, but if IMF gives you wrong advice and you fail instead of providing remedy they will look for advice that will sink you further down the drain.

67 Likes 1 Share

Re: Stop Electricity Subsidy, IMF Tells FG by Fkmodhi: 7:11am On May 13
Lol I laugh in electricity subsidy.

12 Likes

Re: Stop Electricity Subsidy, IMF Tells FG by crossfire(m): 7:12am On May 13
Very fake news
Re: Stop Electricity Subsidy, IMF Tells FG by Houseontherock1: 7:14am On May 13
FG constantly hiding behind IMF to test the mic cheesy

32 Likes 1 Share

Re: Stop Electricity Subsidy, IMF Tells FG by superCleanworks(m): 7:15am On May 13
So IMF is now the technical advisor to the government.?

How come IMF has been so silent during all the multiple decades of brazen corruption and looting that has left us with epileptic power supply? Now Nigerians should bear the load & pay for the damage?

Thank you IMF.

51 Likes 3 Shares

Re: Stop Electricity Subsidy, IMF Tells FG by Biafrannuke: 7:19am On May 13
Reno oncolos Omokiri come and defend your IMF Jewish masters you pretend to hate.

41 Likes 1 Share

Re: Stop Electricity Subsidy, IMF Tells FG by Onyiiobi7735(m): 7:21am On May 13
Lol! Organisation of Western White Pigs and Predatory White Savages!
You are just ranting for nothing, because your Satanic advice would be thrashed as usual.
Thank God for alternative economic organisations like BRICS, and Chinese _Russian Independent economic alliances with developing nations, and developed nations with Anti Western Sociocultural values.
Many developing nations would have been economic slaves, backyard extensions with no real socioeconomic sovereignty and projects of modern era colonialism.

8 Likes

Re: Stop Electricity Subsidy, IMF Tells FG by Paraman: 7:21am On May 13
When every Nigerians start enjoying 24/7 they can stop subsidizing it

7 Likes

Re: Stop Electricity Subsidy, IMF Tells FG by helinues: 7:31am On May 13
IMF should shove their suggestions into their own ass

Thanks but no thanks

61 Likes

Re: Stop Electricity Subsidy, IMF Tells FG by Oboys12: 8:28am On May 13
If I'm a president today whatever IMF recommends I will do the opposite because history has shown that IMF recommendation has always being counter productive on our economy right from IBB Structural adjustments program to every advise they have giving us.

25 Likes

Re: Stop Electricity Subsidy, IMF Tells FG by Qadaffi2idiamin: 8:37am On May 13
A president that wants Western recognition keeps impoverishing the nation through IMF 's draconian policies that will never yield anything but misery.

The irabiji born druggie is a pawn and only his Afuhnja siblings fail to understand that. I hope their lord and personal saviour Reno Omokey will not be quick to counter our very revered [b]Obi Bitters
that flushes out BATerial.

18 Likes 1 Share

Re: Stop Electricity Subsidy, IMF Tells FG by hkidola00(m): 11:21am On May 13
TouchNfollow:


https://punchng.com/stop-electricity-subsidy-imf-tells-fg/#google_vignette
OYSIEC and INEC ,pay us our money for the lg election we conducted over two weeks ago
Re: Stop Electricity Subsidy, IMF Tells FG by Akwamkpuruamu: 11:21am On May 13
Does it mean na IMF de rule this country? Is Bulaba not able to take a decision without IMF

3 Likes

Re: Stop Electricity Subsidy, IMF Tells FG by FalseProphet1(m): 11:22am On May 13
I see world bank taking over Nigeria because of the kind of debt Tinubu has plunged us into.

This I have seen.

6 Likes

Re: Stop Electricity Subsidy, IMF Tells FG by PheelzAlmighty: 11:22am On May 13
Cluelessness at its finest...


Only a daft supports this government and its shenanigans. #spits

4 Likes

Re: Stop Electricity Subsidy, IMF Tells FG by fixedhollies(m): 11:23am On May 13
#tag thunder fire IMF

8 Likes

Re: Stop Electricity Subsidy, IMF Tells FG by ironheart(m): 11:23am On May 13
Can this people just stop? Where has there advice worked?
Re: Stop Electricity Subsidy, IMF Tells FG by potbelly(m): 11:24am On May 13
IMF seems to be the one governing Nigeria...
Re: Stop Electricity Subsidy, IMF Tells FG by seborrhic: 11:24am On May 13
The only way all these subsidy removal would work is to drastically increase pay of workers to the minimum of 615k suggested by labour.
But the private sector can't pay and the inflationary pressure it will bring will send families to oblivion,home ls wrecked and suicide rates at an all time high,unless the goverment then subsidises salary of private sector workers and small business owners and workers,which is going round in cycles.
This times demands wisdom, something Tinubu doesn't have,didn't prepare for and is showing no sign of having the capacity to handle.

7 Likes

Re: Stop Electricity Subsidy, IMF Tells FG by Oneday82: 11:25am On May 13
NIGERIA was never seen as a country, but rather a BUSINESS GROUND. If you doubt about this, go and read history.

Today is IMF calling the short, Tomorrow it might be China, Britain or France telling us how to eat or spend our money.

NIGERIA 🤣🤣🤣 ohhhh, What a mistake

5 Likes

Re: Stop Electricity Subsidy, IMF Tells FG by GlorifiedTunde(m): 11:26am On May 13
I know from experience that if IMF is advising African countries, they don't mean well!

4 Likes 1 Share

Re: Stop Electricity Subsidy, IMF Tells FG by DeLaRue: 11:26am On May 13
The IMF enjoys the attention it gets from winding up Nigerians.

Most countries don't pay attention to the IMF, and so IMF is denied the oxygen of publicity it desperately craves.

Citizens from those countries hear about the IMF once or twice a year during their annual country reports. Infact, during GEJ and Buhari's periods, that was the case in Nigeria too.

But now, because of Nigerians' histrionics and hyper reactions on social media, IMF now says something about Nigeria every week or so. Why, you might say. It is because the IMF knows it can easily provoke Nigerias to react in large numbers.

I bet the young, inexperienced under-30 year old world Bank staff with second class lower in numerous meaningless social sciences degrees are laughing their heads off in their little offices at how easy it is for them to wind up Nigerias.

Nigerians, the IMF is not an economic forecasting god that deserves your endless socia media attention. Many of the people working there are no more educated or clever than you.

The IMF is one of the most inaccurate economic forecasting institutions in the world. That is why most serious countries do not listen to it.

But citizens of Nigeria have now deified the IMF to the extent the institution feels able to intervene in Nigerian matters on a weekly rolling basis.

Get a grip Nigerians. These people are trilling and laughing at you.

2 Likes

Re: Stop Electricity Subsidy, IMF Tells FG by ObongNkakad: 11:26am On May 13
BATeria is a curse

13 Likes

Re: Stop Electricity Subsidy, IMF Tells FG by TechCapon(m): 11:27am On May 13
grin
Re: Stop Electricity Subsidy, IMF Tells FG by Morbeta11(m): 11:27am On May 13
A government of IMF, by IMF, For IMF.

5 Likes

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