After quietly removing subsidies from energy pricing across the country, the Nigerian government revealed on that there are no longer any subsidies in the electrical sector.
Zainab Ahmed, the Minister of Finance, Budget, and National Planning, made the news at a summit of African Finance Ministers and the International Monetary Fund, adding that efforts to eliminate gasoline subsidies are also being considered.
As she sees it, she made this disclosure on Saturday.
“We’re de-subsidizing our subsidies.” We suffered a setback; we were supposed to abolish fuel subsidies by July of this year, but the polity objected strongly.
We have elections coming up, and we just thought that the moment was not right because of the pain that businesses and citizens endured during the COVID-19 outbreak.
“However, we were able to gently remove subsidies in the electrical industry, and we do not have subsidies in the electricity sector right now.” We did this gradually over time by carefully adjusting pricing at some levels while keeping the prices at the lower levels low.
“We are currently doing a study to maintain the subsidy at the current level… We’re now working on a budget amendment to account for the incremental subsidy (elimination) as a result of the decision’s reversal, and we’d like to have it done as soon as possible.
“Hopefully, the parliament will agree with us and we will be able to proceed with our subsidy (removal) plan; otherwise, the way things are going, we won’t be able to foresee where the deficit will be as a result of global market fluctuations.”