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Stop Electricity Subsidy, IMF Tells FG - Politics - Nairaland

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Stop Electricity Subsidy, IMF Tells FG / 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 iwaeda: 8:17am 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/

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Re: Stop Electricity Subsidy, IMF Tells FG by sirjoggy(m): 8:18am On May 13
It seems IMF is our president legislature and judiciary

2 Likes

Re: Stop Electricity Subsidy, IMF Tells FG by kayusely70(m): 8:21am On May 13
Hmmmmmmm!
Re: Stop Electricity Subsidy, IMF Tells FG by condensedmilk: 8:24am On May 13
angry
Re: Stop Electricity Subsidy, IMF Tells FG by AnambraPikinSel: 8:25am On May 13
Head dey pain IMF

1 Like

Re: Stop Electricity Subsidy, IMF Tells FG by Thundafireseun: 8:30am On May 13
When will IMF advocate for increase in salaries

Increase in both welfare and social amenities for Nigerian’s ….Better health care for all Nigerians ?

They are worried about subsidy for light that we don’t even see
Re: Stop Electricity Subsidy, IMF Tells FG by iwaeda: 8:30am On May 13
They are only reducing purchasing power of the people, so they can further slow down the economy, because they are widening the tax net. grin grin grin

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Re: Stop Electricity Subsidy, IMF Tells FG by HopeUzodinma: 8:33am On May 13
As Nigerians didn’t vote tinubu, they must be punished!!!
Nigerians will keep suffering until they wake up and throw the thief out of AsoRock. Else na cry una go dey cry everyday!!!

Hahahahaha

1 Like

Re: Stop Electricity Subsidy, IMF Tells FG by Tokskob2008: 8:37am On May 13
FG is subsidising darkness in the first place so I really don't get what IMF is talking about.... undecided
Re: Stop Electricity Subsidy, IMF Tells FG by AqualinaXYZ: 8:42am On May 13
HopeUzodinma:
As Nigerians didn’t vote tinubu, they must be punished!!!
Nigerians will keep suffering until they wake up and throw the thief out of AsoRock. Else na cry una go dey cry everyday!!!

Hahahahaha



I want the country to crumble to its knees





We must get sense by force




May Nigeria never succeed
Re: Stop Electricity Subsidy, IMF Tells FG by Oxb90: 8:43am On May 13
Them no well.
Re: Stop Electricity Subsidy, IMF Tells FG by malali: 8:52am On May 13
IMF PROMOTING JAPA

AS HUMAN BEINGS WORKING MENIAL JOBS ARE THE NEW PALLIATIVES IN WESTERN COUNTRIES.

TURN UP THE HEAT IN NIGERIA

MORE SLAVES WILL APPLY FOR VISA (THEN WE CAN CHOOSE THE CAPABLE ONES )

AND NOW WE HAVE THE SLAVES BUYING THEIR WON TICKETS TO COME AND DEVELOP OUR COUNTRY.

SAME SLAVE TRADE DIFFERENT SCRIPT.
Re: Stop Electricity Subsidy, IMF Tells FG by iwaeda: 10:03am On May 13
Nlfpmod, let the poor breathe. grin grin cheesy cheesy
Re: Stop Electricity Subsidy, IMF Tells FG by PARADIZEPRIEST: 10:23am On May 13
Nigerians I hope you are seeing who is suffering you,IT IS NOT PTINUBU THAT IS SUFFERING NIGERIANS,IT IS WORLD LENDERS LIKE IMF ,WORLDBANK, FROM ERA OF OBJ TO JONA TO BUHA OVERBORROWINGS WITH NO REFINERY NO STABLE ELECTRICITY FOR PROPER INDUSTRIZATION. grin
If you not do they won't give you anoda loan,they are your problems.
Re: Stop Electricity Subsidy, IMF Tells FG by Beautifulday: 10:57am On May 13
Nah IMF be our president or wetin? I no understand again.
Re: Stop Electricity Subsidy, IMF Tells FG by IamDietiesGod: 12:43pm On May 13
There is a political agenda behind that IMF. It beginning to feel like someone in IMF are working for Tinubu's administration.
Re: Stop Electricity Subsidy, IMF Tells FG by Melagros(m): 1:38pm On May 13
COMRADES, Tinubu's government is nothing but a puppet to IMF

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