The International Monetary Fund, IMF, has emphasised the need for the Federal Government of Nigeria to eliminate electricity subsidy.
This was disclosed in the IMF’s latest country report for Nigeria, in which the global monetary institution insisted that the Tinubu administration’s focus on revenue mobilisation and digitalisation would improve public service delivery and safeguard fiscal sustainability.
The IMF report pointed out that the envisaged reduction in the overall deficit in 2024 would help contain debt vulnerabilities and eliminate the need for CBN financing.
“Temporary and targeted support to the most vulnerable in the form of social transfers is needed, given the ongoing cost-of-living crisis.
“Fuel and electricity subsidies are costly, do not reach those that most need government support, and should be phased out completely,” stated the IMF report.
