The International Monetary Fund (IMF) has clarified that it played no role in the decision by the President Bola Tinubu administration to remove fuel subsidies in Nigeria.
The clarification was made during a press conference at the IMF and World Bank Annual Meetings in Washington DC.
Abebe Selassie, IMF’s African Region Director, emphasized that the decision to remove fuel subsidies was a domestic one made by the Nigerian government. “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 stated.
However, Selassie acknowledged that the government’s choices regarding subsidy removal reflect its long-term strategy for sustainable economic growth. He also recognized the significant social costs involved and suggested that the government can mitigate these by expanding social protection for the most vulnerable citizens affected by the impact of subsidy removal.
President Bola Tinubu had announced the removal of fuel subsidies on May 29, 2023, during his inauguration speech. Since then, the price of fuel has skyrocketed, with a litre currently selling for over N1000.
The subsidy removal has sparked widespread concerns among Nigerians, with many accusing the government of following IMF policies in implementing the decision.