Subsidy Must Go - IMF
Subsidy Must Go - IMF
Why the IMF wants the FG to remove subsidy on fuel and electricity
Issue #15
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Today, we will be looking at:
Why the IMF wants the FG to remove subsidy on fuel and electricity
The 2021 Nigerian WASSCE result is the best in a decade
Why the IMF wants Nigeria to end fuel subsidy
Last week Friday, the International Monetary Fund (IMF) advised the Nigerian government to completely remove fuel and electricity subsidies in early 2022.
The Washington-based organisation noted that the removal of “retrogressive” fuel and electricity subsidies should be considered a priority as part of the government’s fiscal policy. This information was contained in a preliminary finding at the end of its official staff visit to the country under the Article IV Mission.
The international body also called for reforms in the fiscal, exchange rate, trade and governance aspects of Nigeria.
Why does the IMF give this advice?
This, it said, was necessary “to alter the long-running lacklustre growth path.” Adding that, “There are significant downside risks to the near-term fiscal outlook from the ongoing pandemic, weak security situation and spending pressures associated with the electoral cycle.”
Subsidy again?
Despite many claims of subsidy removal by the Buhari administration over the years, the federal government still subsidizes fuel so it can become affordable for Nigerians.
The IMF noted that Nigeria’s past experiences with fuel subsidy removal, which have all been short-lived and reversed, underscore the importance of building a consensus and improving public trust regarding the protection of the poor and efficient and transparent use of the saved resources. Significant additional domestic revenue mobilization is critical to put the public debt and debt-servicing capacity on a sustainable path, it suggested.
To dig deeper, read: Nigeria: Staff Concluding Statement of the 2021 Article IV Mission
The 2021 Nigerian WASSCE result is the best in a decade
The West African Senior School Certificate Examination results announced by the Head of National Office, West African Examination Council, WAEC, Mr Patrick Areghan earlier today, shows that about 81% of the candidates obtained five credit passes including English language and Mathematics.
Giving the breakdown of the results, Mr Areghan said a total of Hundred and Forty Nine (1,573,849) candidates registered for the examination from Nineteen Thousand, Four Hundred and Twenty Five (19,425) recognised secondary schools in the country. Out of the number that registered for the examination, One Million, Five Hundred and Sixty Thousand, Two Hundred and Sixty One (1,560,261) candidates sat for the examination.
He remarked that: ” The analysis of the statistics of the performance of candidates in the examination shows that out of the One Million, Five Hundred and Sixty Thousand, Two Hundred and Sixty One (1,560,261) candidates that sat for the examination, “One Million, Three Hundred and Ninety-Eight Thousand, Three Hundred and Seventy (1,398,370) candidates, representing 89.62%, obtained credit and above in a minimum of any five (5) subjects.
While one Million, Two Hundred and Seventy Four Thousand, Seven Hundred and Eighty-Four (1,274,784) candidates, representing 81.7%, obtained credits and above in a minimum of five (5) subjects, including English Language and Mathematics.
“Of this number, Six Hundred and Thirty Thousand, One Hundred and Thirty-Eight (630,138) i.e. 49.43% were male candidates, while Six Hundred and Forty-Four Thousand, Six Hundred and Forty-Six (644,646) i.e. 50.57% were female candidates.
This is an improvement from the percentage of candidates in this category in the WASSCE for School Candidates, 2020, that obtained credit and above in a minimum of five (5) subjects, including English Language and Mathematics which stood at 65.24%.
However, the results of One Hundred and Seventy Thousand, One Hundred and Forty-Six (170,146) candidates, representing 10.9% of the total number of candidates that sat the examination, are being withheld in connection with various reported cases of examination malpractice.
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This brief was put together while listening to Never Stopped by Buju.