The International Monetary Fund (IMF) has clarified that it was not responsible for the removal of the fuel subsidy in Nigeria, stating that this was a decision made by the country’s government.
Abebe Selassie, the IMF’s African Region Director, made this statement on Friday during the IMF and World Bank Annual Meetings in Washington, D.C.
“The decision was a domestic one. We don’t have programmes in Nigeria. Our role is limited to regular dialogue, as we have with other nations like Japan or the UK,” Abebe said.
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During his inauguration in May 2023, President Bola Tinubu announced that fuel “subsidy is gone,” leading to an immediate increase in fuel prices across the country. The cost surged from around ₦200 per litre to approximately ₦1,200 in various regions of Nigeria.
In the following months, the Tinubu administration also floated the naira as part of economic reforms aimed at strengthening the economy.
However, these measures have resulted in a significant rise in the cost of living, with inflation reaching 32.72 percent, making basic necessities unaffordable for millions of Nigerians.
In response to the challenging economic conditions, President Tinubu has consistently urged Nigerians to be patient, emphasizing that the reforms are irreversible. He believes these changes will ultimately benefit the country and has introduced several intervention measures to mitigate the immediate impacts of the policies.
The IMF’s African Region Director has praised these reforms and encouraged the Federal Government to implement additional programs to protect vulnerable populations from the adverse effects of the changes.
“We recognize the significant social costs involved,” Abebe said. “The government can mitigate these by expanding social protection for the most vulnerable.”
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