The IMF has recommended that the Federal Government of Nigeria should stop giving electricity discounts to people because Nigerians have been struggling since the fuel subsidy was stopped in May 2023.
The international organization known as the Bretton Woods Institution suggested that Nigeria should phase out electricity discounts to help stabilize the economy.
This supports the government’s statement from late last year that the country spent N375.8 billion on electricity subsidies from January to September 2023, while consumers paid a total of N782.6 billion for electricity during the same period.
In its published report called the ‘Post Financing Assessment (PFA),’ the IMF stated that the federal government had taken on too much financial burden. As a result, the IMF suggested that the government should eliminate both fuel and electricity subsidies.
The IMF praised the federal government for the changes it made already but said again that it thinks the government should get rid of fuel and electricity subsidies.