*Vows to avoid reemergence of fuel subsidy
Lagos — A new report by the International Monetary Fund, IMF has revealed readiness of the federal government to put an end to electricity tariff shortfalls by June this year.
The IMF, in a report after the conclusion of its Article IV consultation with Nigeria, said the authorities also vowed to eschew the return of fuel subsidy.
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.”
Electricity utilities firms have over the years, blamed tariff shortfalls for their inability to provide stable power supplies.
Although the Federal Government had removed petrol subsidy in March last year however, recent increase in prices of products at NNPC depots had reawakened speculations over the inevitability of return of the subsidy era.
Just last week, oil marketers lamented high prices of products, and threatened to withdraw their services if government would not address the situation. They speculated that FG has since been subsidising petrol.
The alleged return of subsidy by oil marketers is in contrast to what Minister of State of Petroleum Resources, Chief Timipre Sylva said in July last year; that the Federal Government had reached a conclusion that it could no longer bear the burden of petrol subsidy.