Gloria Robert, Abuja
The International Monetary Fund (IMF) has denied claims that it influenced Nigeria’s decision to remove the fuel subsidy, stating that the choice was entirely domestic.
This clarification came during the IMF and World Bank Annual Meetings in Washington, D.C.
“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,” said Abebe Selassie, IMF Director for the African Region, as reported by Vanguard.
Selassie noted that while the IMF acknowledges the importance of investing in key sectors, such as healthcare, infrastructure, and education, it sees subsidy removal as aligning with Nigeria’s economic goals.
“These are domestic and political decisions that the government had to make,” he stated, adding that the IMF views it as a step toward “greater public resource efficiency.”
The subsidy removal, announced by President Bola Tinubu on May 29, 2023, led to a sharp rise in fuel prices, with a litre now selling for over N1,000.
The price increase has fueled public concern, with critics accusing the government of aligning with IMF policies in its approach to subsidy removal.
Selassie acknowledged the hardships resulting from this policy change, suggesting that the Nigerian government could reduce the impact by “expanding social protection for the most vulnerable.”
As Nigeria deals with the effects of this policy, the IMF’s stance clarifies its advisory role, focusing on dialogue rather than direct intervention in the country’s fiscal policies.
