IMF clarifies stance on Nigeria’s fuel subsidy removal amid rising economic challenges

The International Monetary Fund (IMF) clarified that it was not behind Nigeria’s recent removal of fuel subsidies, a decision made independently by the Nigerian government.

The IMF has faced criticism for Nigeria’s recent fiscal reforms, which have led to rising inflation and increased hardship for many citizens.

Speaking at a press conference during the IMF and World Bank Annual Meetings in Washington DC, IMF’s African Region Director, Mr. Abebe Selassie, stated, “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.”

Mr. Selassie acknowledged the IMF’s guidance on public resource management, noting that, while Nigeria needs substantial investment in infrastructure, healthcare, and education, the government’s choices regarding subsidy removal reflect its long-term strategy for sustainable economic growth.

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“Ultimately, these are profound domestic and political decisions that the government had to make,” he said, expressing that the IMF sees these choices as steps toward greater public resource efficiency.

Admitting the economic impact on Nigerians, Mr. Selassie encouraged the Nigerian government to roll out social investments to help vulnerable groups manage the transition.

“We recognize the significant social costs involved,” he noted.

“The government can mitigate these by expanding social protection for the most vulnerable.”