program, as well as the conditional cash transfer payment scheme for the most vulnerable and in support of homegrown school feeding program. As part of the effort to fight corruption, in 2016, several high profile cases of corruption were exposed and ill-gotten wealth confiscated.
The Nigerian economy is gaining momentum reflecting higher oil production and strong performance in agriculture. The recent measures to reduce vulnerabilities, including fuelpricederegulation, monetary policy tightening, and measures to address possible exchange rate
Growth remained strong in the region in 2012, with regional GDP rates increasing in most countries (excluding Nigeria and South Africa). Projections point to a moderate, broad-based acceleration in growth to around 5½ percent in 2013¬14, reflecting a gradually strengthening global economy and robust domestic demand. Investment in export-oriented sectors remains an important economic driver, and an agriculture rebound in drought-affected areas will also help growth. Uncertainties in the global economy are the main risk to the region’s outlook, but plausible adverse shocks would likely not have a large effect on the region’s overall performance.
reform, it is important to identify main stakeholders and interest groups, and develop strategies to address their concerns. In Kenya, consultation with unions allowed the electricity reform process to proceed without the retrenchment of staff in the utilities. In addition, early in the reform process, the support of large consumers for tariff increases was secured only with a commitment to use extra revenue to expand electricity supply. In Namibia, the National Deregulation Task Force in 1996 examined fuelpricederegulation through a broadly consultative process
Minister of Mines and Energy, established the National Deregulation Task Force in 1996 to examine fuelpricederegulation through a broadly consultative process, culminating in the publication of the White Paper on Energy Policy in 1998. In Niger, the authorities also opted for a consensual approach, co-opting all relevant stakeholders. They established the Commité du Differé to discuss the best way to approach the reforms and their subsequent implementation. In Kenya, consultation with unions allowed the electricity reform process to proceed without the retrenchment
, the National Energy Council, chaired by the Minister of Mines and Energy, established a National Deregulation Task Force to examine fuelpricederegulation through a consultative process. The task force recommended keeping targeted subsidies to remote areas, deregulating prices gradually, and enhancing transparency in the handling of government fuel tax revenues. Price smoothing, complemented by mitigating measures such as pump price subsidies for rural fuel stations, were key to the reform’s eventual success over the following decade. Similarly, in Niger, the
Mr. Trevor Serge Coleridge Alleyne and Mr. Mumtaz Hussain
The reform of energy subsidies is an important but challenging issue for sub-Saharan African (SSA) countries. There is a relatively large theoretical and empirical literature on this issue. While this paper relies on that literature, too, it tailors its discussion to SSA countries to respond to the following questions: Why it is important to reduce energy subsidies? What are the difficulties involved in energy subsidy reform? How best can a subsidy reform be implemented? This paper uses various sources of information on SSA countries: quantitative assessments, surveys, and individual (but standardized) case studies.
, and consultative approach to price deregulation and subsidy removal. The National Energy Council, chaired by the Minister of Mines and Energy, established the National Deregulation Task Force in 1996 to examine fuelpricederegulation through a consultative process. This culminated in the publication of a white paper on energy policy in 1998, which articulated, among other issues, the importance of keeping targeted subsidies to remote areas, gradual deregulation, and enhancing transparency in government fuel tax revenues. The fuel price mechanism with quarterly
International Monetary Fund. Middle East and Central Asia Dept.
Morocco has made substantial progress in increasing inclusive growth over the past decade, but additional efforts in terms of growth-enhancing structural reforms are needed. Preserving economic efficiency and fostering growth while strengthening inclusiveness remains a priority. This paper describes the fuel subsidy system in Morocco, introduces an organizing framework to illustrate the trade-offs involved in meeting various economic and social objectives when considering subsidy reform, and highlights some lessons from the international experience in implementing subsidy reforms that may be pertinent to the case of Morocco.
Energy subsidies have wide-ranging economic consequences. While aimed at protecting consumers, subsidies aggravate fiscal imbalances, crowd-out priority public spending, and depress private investment, including in the energy sector. Subsidies also distort resource allocation by encouraging excessive energy consumption, artificially promoting capital-intensive industries, reducing incentives for investment in renewable energy, and accelerating the depletion of natural resources. Most subsidy benefits are captured by higher-income households, reinforcing inequality. Even future generations are affected through the damaging effects of increased energy consumption on global warming. This paper provides: (i) the most comprehensive estimates of energy subsidies currently available for 176 countries; and (ii) an analysis of ?how to do energy subsidy reform, drawing on insights from 22 country case studies undertaken by IMF staff and analyses carried out by other institutions.
early in the reform process. These were overcome after intense negotiations with stakeholders, particularly with large consumers, and efforts to communicate the objectives and benefits of the reform.
In Namibia, the National Energy Council, chaired by the Minister of Mines and Energy, established the National Deregulation Task Force to examine fuelpricederegulation through a consultative process.
In Niger, the authorities established the Comité du Différé to discuss the best way to approach the fuel subsidy reforms and their subsequent consultation with all