Remove fuel, electricity subsidies early 2022, IMF tells FG
The International Monetary Fund said on Friday that the Nigerian government should remove fuel and electricity subsidies completely early next year and implement revenue-based fiscal consolidation.
The IMF, in a statement at the end of its 2021 Article IV Mission, said with the emergence of fuel subsidies and slow progress on revenue mobilisation, the country’s “fiscal outlook faces significant risks”.
It said the continued reliance on administrative measures to address persistent foreign exchange shortages was negatively impacting confidence.
According to the Washington-based fund, without urgent fiscal and exchange rate reforms, the medium-term outlook faces sub-par growth.
It highlighted the need for major reforms in fiscal, exchange rate, trade and governance to alter what it described as “the long-running lackluster growth path”.
Click HERE to Register
It said, “On the immediate front, fiscal and external imbalances require removal of regressive fuel and electricity subsidies, tax administration reforms and installing a fully unified market-clearing exchange rate.
“The complete removal of regressive fuel and electricity subsidies is a near-term priority, combined with adequate compensatory measures for the poor. The mission stressed the need to fully remove fuel subsidies and move to a market-based pricing mechanism in early 2022 as stipulated in the 2021 Petroleum Industry Act.”
The IMF said the implementation of cost-reflective electricity tariffs as of January 2022 should not be delayed.
It said, “Well-targeted social assistance will be needed to cushion any negative impacts on the poor, particularly in light of still elevated inflation.
“Nigeria’s past experiences with fuel subsidy removal, which have all been short-lived and reversed, underscore the importance of building a consensus and improving public trust regarding the protection of the poor and efficient and transparent use of the saved resources.”
According to the IMF, the headline fiscal deficit is projected to worsen in the near term and remain elevated over the medium term.
It said, “Despite much higher oil prices, the general government fiscal deficit is projected to widen in 2021 to 6.3 per cent of GDP, reflecting implicit fuel subsidies and higher security spending, and remain at that level in 2022.
“There are significant downside risks to the near-term fiscal outlook from the ongoing pandemic, weak security situation and spending pressures associated with the electoral cycle.”
The fund said over the medium term, without bold revenue mobilisation efforts, fiscal deficits could stay elevated above the pre-pandemic levels with public debt increasing to 43 per cent in 2026.
“General government interest payments are expected to remain high as a share of revenues making the fiscal position highly vulnerable to real interest rate shocks and dependent on central bank financing,” it added.
Call Bridget Edokwe Esq on 08060798767 or send your email to firstname.lastname@example.org
CLICK HERE DOWNLOAD TO APP
The price of the book is fifteen thousand Naira (N 15,000) only.
Call any of the numbers below to place your order 08104426598 ,08052508679, 08106743227; or visit, Theemploymentlawhandbook.com. for more information.
To view About the book Author, Foreword and Table of Content, click Below [https://godigital.ng/about_book.pdf] To Place order and Cost, click here [https://godigital.ng/place_order.aspx Any further question or clarification call 08163162202 or send mail to email@example.com
Available at Frank Agbedo & Co. Crown Chambers. 5th floor, left wing, Nipost Building, Lagos Island, Lagos State. Tel: 08033254471, 09077950432 Email: firstname.lastname@example.org
Price: ₦20,000 or £25 per copy [Hard Back– 20 chaps/715 pages] Contact Information Email: email@example.com, firstname.lastname@example.org WhatsApp only: 0803-703-5989 Voice Call – Mobile: 0817-630-8030,+234-805-2128-456, +234-909-
TO ORDER/BUY THE BOOK CLICK BELOW https://flutterwave.com/store/juristpublicationseries - Alternative Mode of Payment: Pay to: Jurist Publication Series, GTBANK 0218803029-- Upon payment, call or text.
Price: ₦20,000 or £25 per copy [Hard Back– 21 chaps/700 pages]: Contact: email@example.com, firstname.lastname@example.org WhatsApp only: 0803-703-5989 : Voice Call – Mobile: 0817-630-8030, 0909-965-1401; 0705-767-0347; 0912-173-4691 : Landline: 09-2913581; 09-2913499>