Nigerian govt to end fuel subsidy by June

In a bid to get the World Bank approval for the $3.4 billion loan request, the Federal Government has declared its intention to end payment of fuel and electricity subsidies by the middle of this year.

The Nigerian National Resources Charter (NNRC) disclosed this on its Twitter handle on Sunday.

The removal of fuel subsidy and hike in electricity tariff were part of the conditions set by the International Monetary Fund (IMF) and World Bank for the approval of the $3.4 billion loan.

NNRC said the federal government has expressed a strong commitment to preventing fuel subsidies from resurfacing and to fully eliminate electricity tariff shortfalls.

READ ALSO: Nigeria’s petroleum minister blames fuel subsidy for faulty refineries

Citing a report by IMF after the conclusion of its Article IV consultation with Nigeria, the agency noted that Bretton Woods institution believes that lifeline tariffs and other relief measures are adequate to protect poorer households from hikes in electricity prices.

It also highlighted the benefits from higher and more predictable availability.

“The World Bank President, David Malpass, on April 8 met with the Minister of Finance, Budget and National Planning, Zainab Ahmed and the Governor of Central Bank of Nigeria, Godwin Emefiele, to discuss the removal of energy subsidies among other issues,” NNRC said.

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