Business

IMF tells FG to increase electricity and fuel prices by phasing out subsidies

The International Monetary Fund (IMF) has urged the federal government to fully eliminate subsidies for fuel and electricity, highlighting that these financial supports are not only expensive but also ineffective in benefiting the populations most in need of assistance.


Although not explicitly mentioned, the underlying implication of removing these subsidies is a likely surge in the prices of electricity and fuel.


This is because current subsidized rates are thought to be significantly below the actual market prices. By phasing out these subsidies, the government would allow fuel and electricity prices to align more closely with their true market value, potentially leading to increased costs for consumers.