IMF Denies Involvement in Nigeria's Fuel Subsidy Removal

Written on 25/10/2024
Daily Trust

The International Monetary Fund (IMF) has refuted claims that it was behind the removal of fuel subsidies in Nigeria. Abebe Selassie, Director of the IMF’s African Region, clarified during a press briefing at the IMF and World Bank Annual Meetings in Washington, DC, on Friday that the decision to end the subsidy was made domestically by President Bola Tinubu.

Selassie emphasized that the move was not directed by the IMF but rather a choice taken by the Nigerian government to address local economic challenges.



“The decision was a domestic one. We don’t have programs in Nigeria. Our role is limited to regular dialogue, as we have with other nations like Japan or the UK,” Selassie said.

However, Selassie argued that the government’s choices regarding subsidy removal reflect its long-term strategy for sustainable economic growth.

“We recognize the significant social costs involved. The government can mitigate these by expanding social protection for the most vulnerable,” he said.

During his inauguration in May 2023, President Tinubu declared that fuel “subsidy is gone”.

That pronouncement immediately led to a hike in the cost of the commodity across the country. From about N200 per liter, the product is selling for about N1,200 in several parts of the country.

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