Nigeria: IMF, we need help here as we are low on cash to fight Covid-19 pandemic.
IMF: The Nigerian people must agree on one thing: pay full cost of electricity consumption with all subsidies removed.
Nigeria: There is no problem. We will do that from 2021. Can I send our bank account to wire the money?
IMF: Not yet, I need a written commitment.
Nigeria: Draft and we will sign.
IMF: Perfect – document sent.
Nigeria: We have signed. The bank account has been sent also.
IMF: Transfer of $3.4 billion done.
Nigeria: Daalu, e dupe, na gode
People, IMF may be accomplishing the near impossible: get Nigerians to pay the full cost of electricity. Sure, people claim nothing is offered for them to pay. Interestingly, without the improved tariff, investors will not pump money to fix any paralysis in the energy sector. With naira losing value to global currencies, and the power business not relying on sand from Okija or metals from Ogbomosho or trees from Sambisa forest, rate increment seems like a good idea. Of course, not many will agree. But now that the IMF has conditioned on that, we will see what happens. This is a BIG reset if it happens.
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