The International Monetary Fund has warned Nigeria to create a lasting solution to her use of highly inefficient generators which it described as harmful.
IMF noted that it is important for Africa largest economy Nigeria to solve her power problem which has made the cost of doing business very high.
Abebe Selassie, director, African Department, IMF, observed that Nigeria had not made a significant push in the direction of global shift for greener energy, adding that if not addressed it would affect the country’ economy.
Selassie while responding to question at a press briefing on regional economic outlook, Sub-Saharan Africa said for Nigeria to unleash its tremendous potential requires reforms in three areas namely.
“Creating more fiscal space through domestic revenue mobilisation to pay for investments in health, in education, in infrastructure, which Nigeria swiftly needs”.
“Second, I think reforms in the energy sector are going to be paramount. The cost of doing business is very high on account of the inefficiencies in the energy sector, power supply interruptions, and the famous recourse to the use of highly inefficient and harmful generator up and down the country.
“Again, getting power supply, getting policies to make sure that Nigeria resolves this problem once and for all, I think, is also paramount. And thirdly, macroeconomic policy calibration, things like creating deep and liquid foreign exchange markets will be important.”
Selassie said the IMF was seeing quite a lot of countries going through a recovery in 2021 after the negative impacts of the 2020 lockdown introduced to curtail COVID-19 spread.
He said, “And so, that will give strong growth outcomes this year in many cases. This is very different from saying that the fundamental drivers of growth over the medium to long term have been improved in a dramatic way, allowing stronger growth. So, that’s a point I would stress.”