The International Monetary Fund (IMF) has advised the Federal Government of Nigeria to eliminate electricity subsidy, emphasizing the importance of revenue mobilization and digitalization for improved public service delivery and fiscal sustainability.
In its latest country report for Nigeria, the IMF stressed the necessity of reducing the overall deficit by 2024 to contain debt vulnerabilities and eliminate the need for Central Bank of Nigeria financing. The report also highlighted the need for targeted support to the most vulnerable through social transfers, amid the ongoing cost-of-living crisis.
According to the IMF, fuel and electricity subsidies are costly, fail to reach those most in need of government support, and should be completely phased out to ensure efficient allocation of resources.
