Nigeria’s electricity, fuel subsidies may gulp N7tn – IMF

 The International Monetary Fund has said Nigeria may incur an expenditure of around N7trn should the existing fuel pump price cap and electricity subsidy be upheld in 2024.

The fund also stated that the current administration inherited a challenging economic situation characterised by low growth, diminished revenue collection, escalating inflation, and longstanding external imbalances, stressing that the continued capping fuel pump prices and electricity tariffs below their recovery costs could lead Nigeria to incur fiscal costs of up to three per cent of its Gross Domestic Product in 2024.

“The capping of fuel pump prices and electricity tariffs below cost recovery could have a fiscal cost of up to 3 per cent of GDP in 2024,” IMF stated in a statement following a recent visit by an IMF team led by Axel Schimmelpfennig, the IMF Mission Chief for Nigeria.

See full report at Punch NG