Stop Fuel Subsidy Payment — IMF Cautions Nigeria

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STOP FUEL SUBSIDY

Stop Fuel Subsidy Payment — IMF Cautions Nigeria The Managing Director, International Monetary Fund (IMF), Mrs. Christine Lagarde, has advised the Nigerian government to jettison spending on fuel subsidy and instead expend such money on health, education and infrastructural development. Lagarde, who made the call Thursday during the Global Policy Agenda press briefing at the ongoing World Bank Spring Meeting in Washington DC, said subsidy spending was infringing on other critical areas of capital development, including health, education and infrastructure, hence the need for the government to refocus. The IMF chief said it is the monetary institution’s general principle to discourage fossil fuel subsidies because of its consequences on other areas of life and development. Her Words: “As far as Nigeria is concerned, with the low revenue mobilisation that exists in the country; in terms of tax to GDP, Nigeria is amongst the lowest. A real effort has to be done in order to maintain a good public finance situation for the country. And in order to direct investment towards health, education, and infrastructural development.” “If you look at our numbers from 2015, it is no less than about 5.2 trillion dollars that are spent on fuel subsidies and the consequences thereof. And the Fiscal Affairs Department has actually identified how much would have been saved fiscally but also in terms of human life, if there had been the right price on carbon emission as of 2015. Numbers are quite staggering. “If that was to happen, then there would be more public spending available to build hospitals, to build roads, to build schools, and to support education and health for the people. “Now, how this is done is the more complicated path because there has to be a social protection safety net that is in place so that the most exposed in the population do not take the brunt of those removal of subsidies principle. So that is our position.” READ ALSO! More Nigerians Now Living In Extreme Poverty — International Labour Congress READ ALSO! 10million More Nigerians Have Been Lifted From Poverty Under Buhari — Presidency Says READ ALSO! Buhari Reacts To Boko Haram’s Threat To Kill Leah Sharibu READ ALSO! More Nigerians Getting Killed, Getting Poorer, Hungrier Under Buhari’s Incompetent Regime — PDP READ ALSO! More Nigerians Have Been Murdered In Attacks Since January More Than Entire 2017 — Amnesty International READ ALSO! 10million More Nigerians Have Been Lifted From Poverty Under Buhari — Presidency Says READ ALSO! More Nigerians Travelling Out Due To Economic Hardship, Over 500,000 Since 2016 READ ALSO! The Smart CEO: Top 5 Websites To Get Cheap Domain Name Registration READ ALSO! More Nigerians In Kano, Katsina Now Using Hard Drugs — Group Says READ ALSO! More Nigerians Dying Hourly From Tuberculosis, 18 Every Hour — WHO]]>