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The IMF has warned that Nigeria’s below-cost electricity tariffs are generating implicit subsidies that constitute a growing contingent liability on public financesThe Fund’s 2026 Article IV Consultation Report on Nigeria revealed that electricity sector arrears reached three-quarters of Nigeria’s GDP by the end of 2025The IMF urged the Federal Government to deepen power sector reforms as part of a broader effort to strengthen Nigeria’s fiscal position
Legit.ng journalist Victor Enengedi has over a decade’s experience covering energy, MSMEs, technology, banking and the economy.
The International Monetary Fund (IMF) has called on the Federal Government of Nigeria to accelerate electricity sector reforms, warning that persistent below-cost-recovery tariffs are inflicting significant financial losses and exposing public finances to rising fiscal risks.
The recommendation was contained in the IMF’s 2026 Article IV Consultation Report on Nigeria, which was analysed following discussions the Fund held with senior government officials, lawmakers, labour representatives, private-sector stakeholders, and development
