The International Monetary Fund says Nigeria agreed to avoid the return of fuel subsidy and to eliminate electricity tariff shortfalls by June this year.
Recall that the Federal Government removed petrol subsidy in March last year after reducing the pump price of the product to N125 per litre from N145 on the back of the sharp drop in crude oil prices.
It said, “They expressed strong commitment to prevent fuel subsidies from resurfacing and to fully eliminate electricity tariff shortfalls by mid-2021.
“They believe that lifeline tariffs and other relief measures are adequate to protect poorer households from increases in electricity prices and highlighted the benefits from higher and more predictable availability.”
According to the IMF report, Nigerian authorities expect the Petroleum Industry Bill to be approved by parliament by the first quarter of this year.
It said they were confident that the ensuing reforms would significantly boost investment in the oil sector as well as generate sizable positive spillovers for the non-oil economy.
