The International Monetary Fund (IMF) has denied influencing the Nigerian government’s decision to remove subsidies on petrol.
The IMF’s African Region Director, Abebe Selassie, made this known at a press briefing on the sidelines of the IMF and World Bank Annual Meetings in Washington DC, United States on Friday, October 25, 2024.
“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,” Selassie said.
“We recognise the significant social costs involved. The government can mitigate these by expanding social protection for the most vulnerable,” he added.
Tinubu says subsidy is gone
Recall that President Tinubu announced the end of the subsidy regime during his inauguration speech on May 29, 2023.
The pronouncement triggered an immediate hike in fuel prices, with the pump price per litre jumping from N185 to over N600 across the country.
Fuel prices have since increased to about N1,200 in several parts of the country due to the full deregulation of the downstream by the Nigerian National Petroleum Company (NNPC) Limited.
The petrol subsidy removal also had ripple effects as the cost of transportation skyrocketed while food prices reached an all-time high.
But Tinubu has insisted that the policy, alongside other reforms, is necessary for Nigeria to navigate itself back on the path of economic growth.
