The International Monetary Fund (IMF) has suggested the “complete” phasing out of electricity subsidies in Nigeria, saying it would restore macroeconomic stability in the country.
The Bretton Woods Institution’s recommendation came as Nigerians are still battling the economic hardship occasioned by the scrapping of fuel subsidy on May 29, 2023, by the present administration.
Like the past gas subsidy, the electricity subsidy takes a huge chunk of the government’s revenue. Between January and September 2023, the Nigerian government paid a whopping N135.2 billion to ensure Nigerians had power supply.
The authorities set aside N1.6 trillion for electricity subsidy in 2024 despite the past administration of Muhammadu Buhari claiming to have “quietly” removed subsidy in the power sector.
Many Nigerians disagree with the IMF’s position on power subsidy. The country’s Minister of Power, Adebayo Adelabu, said it was needed to alleviate “additional burden on Nigerians.”
—Ezinwanne Onwuka reports for TruthNigeria from Abuja.
