The International Monetary Fund (IMF) has advised the Nigerian government to completely phase out costly fuel and electricity subsidies that are inefficient in reaching the most vulnerable.
“Fuel and electricity subsidies are costly, do not reach those that most need government support and should be phased out completely,” IMF said in a report.
This recommendation comes in a new report titled “IMF Executive Board Concludes Post-Financing Assessment with Nigeria,” published on Friday, February 9.
The IMF commended President Bola Tinubu’s administration for tackling structural issues by removing fuel subsidies and unifying exchange rates.
“The new administration has made a strong start, tackling deep-rooted structural issues in challenging circumstances. Immediately, it adopted two policy reforms that its predecessors had shied away from: fuel subsidy removal and the unification of the official exchange rates,” the report said.
“Since then, the new CBN team has made price stability its core mandate and demonstrated this resolve by dropping its previous role in development finance. On the fiscal side, the authorities are developing an ambitious domestic revenue mobilisation agenda.”
IMF, however, warns of a challenging road ahead, saying that like many other countries, Nigeria faces a difficult external environment and wide-ranging domestic challenges.
“External financing (market and official) is scarce, and global food prices have surged, reflecting the repercussions of conflict and geo-economic fragmentation. Per-capita growth in Nigeria has stalled, poverty and food insecurity are high, exacerbating the cost-of-living crisis. Low reserves and very limited fiscal space constrain the authorities’ option space.”
The IMF stated that the government’s focus on revenue mobilisation and digitalisation would improve public service delivery and fiscal sustainability, but the anticipated reduction in the overall deficit in 2024 would help contain debt vulnerabilities and eliminate the need for CBN financing.
According to the IMF, Nigeria’s capacity to repay the fund is adequate under the baseline, and the authorities’ policy intentions are well positioned to address the risks of a downside scenario in which difficult trade-offs between urgent humanitarian needs and debt service may arise.
“In such circumstances, aggressive monetary tightening and fiscal adjustment, combined with support from development partners, would be needed to restore macroeconomic stability,” it added.
It also advised the Nigerian government to prioritise settling the Central Bank of Nigeria’s (CBN) overdue dollar obligations.
This move, according to the IMF, is crucial for rebuilding confidence in the central bank and the naira, eventually contributing to a more stable financial environment.
Hardship: Naira Is Stabilising, FG’s Reforms Yielding Positive Results – Information Minister
…Insists FG Will Go After Saboteurs
Minister of Information and National Orientation, Mohammed Idris, says the Nigerian Government is identifying and sanctioning individuals sabotaging the economy.
The minister noted that the removal of the petrol subsidy was one policy decision that all the three major candidates agreed on in their campaign messages.
He said it was mystifying to see people who had argued stridently for the removal of subsidy now pretending to be against it, noting that such insincerity does not bode well for the country.
Idris insisted that the President’s policies are yielding positive results.
He, however, said that the government was not under any illusion that the policies are silver bullets, or that nothing else is required.
Stressing that the government will not allow its efforts to be jeopardised, the minister said regulatory and enforcement agencies have been working round the clock in the past few days to identify, investigate and sanction those involved in illegal activities and sabotage within the forex market.
“As respected economists and experts have acknowledged, these foundational reforms will be difficult and painful for Nigerians in the short-term,” the Minister said in a statement he signed and made available to journalists in Abuja on Friday.
“The problems that we are solving are no doubt multifaceted, intertwined, and deep-rooted, requiring creative, strategic, decisive, and multi-pronged solutions. These bold moves being implemented are in full alignment with what is required.
“It is heartwarming to note that we are starting to see the results. Indeed, the naira is stabilizing, and the foreign exchange market is seeing a surge of inflows.
“Sadly, as with any effort to reform and sanitise a system entrenched in long-term malpractice, the CBN’s efforts have been met with ferocious resistance from speculators and other unscrupulous players within and outside our country, who profit from dysfunction and opacity.
“To tackle this, regulatory and enforcement agencies of government have been working round the clock in the past few days, joining forces to address these efforts at undermining the reforms.
“That strategic alliance has led to the intelligence-led identification, investigation and sanctioning of individuals and organizations involved in illegal activities and sabotage within the forex market.
“Relevant regulatory and security agencies have been directed to remain vigilant to ensure that malpractices capable of undermining our currency are averted and that those engaged in these acts are brought to book. The government will not allow its efforts to be jeopardised
BREAKING: INEC Publishes Report Of 2023 General Election
The Independent National Electoral Commission, INEC, has released its report on the 2023 general election.
The commission said the publication of the report is in keeping with its tradition over the last four electoral cycles and commitment to transparency.
This was made known in a statement by Sam Olumekun, the National Commissioner and Chairman, Information and Voter Education Committee.
Olumekun said the Report showcases the election’s unparalleled diversity in party representation, demonstrating significant democratic progress.
According to him, the 2023 general election saw four political parties winning gubernatorial races, seven parties winning senatorial seats, eight in federal constituencies and nine in State legislatures, illustrating a broad shift in political representation across Nigeria.
He said the document has been made accessible on its website and social media platforms.
“On Thursday, 22nd February 2024, the Commission convened for its weekly meeting, where the 2023 General Election Report was reviewed and approved for publication.
It partly read: “In keeping with our tradition over the last four electoral cycles, and our commitment to transparency, we are pleased to announce the release of the official INEC report on the 2023 General Election.
“This comprehensive 526-page document, structured into 13 chapters and enhanced with 60 tables, 14 boxes and 10 graphs, offers an in-depth analysis of the election’s key processes, achievements, and challenges, alongside valuable lessons learned.
“The Report showcases the election’s unparalleled diversity in party representation, demonstrating significant democratic progress. This election saw four political parties winning gubernatorial races, seven parties winning senatorial seats, eight in federal constituencies and nine in State legislatures, illustrating a broad shift in political representation across Nigeria.
“The Report underscores the pivotal role of technological advancements, particularly the Bimodal Voter Accreditation System (BVAS), in enhancing electoral integrity and reducing fraud. Furthermore, it addresses public concerns about the INEC Result Viewing (IReV) portal, explaining the technical issues encountered during the upload of polling unit results for the presidential election.
JUST IN: Okpebholo Declared Winner Of Edo APC Gov’ship Primary
Senator Monday Okpebholo has been declared winner of the All Progressives Congress (APC) primary election for the September 2024 governorship election in Edo State.
Okpebholo scored 12, 433 votes to emerge winner.
- High Court Grants Bail To Ex-Kwara Gov, Abdulfatah Ahmed
- Hardship: Naira Is Stabilising, FG’s Reforms Yielding Positive Results – Information Minister
- BREAKING: INEC Publishes Report Of 2023 General Election
- JUST IN: Okpebholo Declared Winner Of Edo APC Gov’ship Primary
- Rapper Ikechukwu Confirms Separation from Wife
JOIN US ON FACEBOOK
Entertainment2 years ago
BBNaija: “Shameful For A Married Woman” – Boma, Tega Doing ‘Stuff’ Under Duvet Sparks Outrage (See Video)
Headline2 years ago
Olukoya’s Govt Marked A Phenomenal Moment In Old Ondo – Akeredolu
Entertainment2 years ago
Singer, Oxlade In Big Mess After His Sex Tape With A Strange Lady Surfaces Online (Watch Video)
Entertainment4 years ago
BBNaija: Kiddwaya Sucks Erica’s Boobs, Licks Dorathy’s Neck In Truth Or Dare Game (Video)
Headline2 years ago
Just In: 2023: We Won’t Support Tinubu’s Ambition -Ambode Campaign Organisation
World news5 years ago
Why I Quit Nun To Become A Porn Star After 8 Years At Convent – Yudi Pineda
Entertainment2 years ago
Pornstar, Harley Dean Accuses Rihanna, Travis Scott Of Allegedly Spreading STDs
Entertainment3 years ago
I’m Not Sick But Only Lost Some Weight – Kiss Daniel