IMF Denies Involvement in Nigeria’s Fuel Subsidy Removal

IMF Denies Involvement in Nigeria’s Fuel Subsidy Removal

The International Monetary Fund (IMF) has clarified that it played no role in Nigeria’s recent decision to remove fuel subsidies, which was made independently by the Nigerian government.

The IMF has faced criticism related to Nigeria’s fiscal reforms, which have contributed to rising inflation and increased hardships for many citizens.

During a press conference at the IMF and World Bank Annual Meetings in Washington DC, the IMF’s African Region Director, Mr. Abebe Selassie, emphasized, “This was a domestic decision. We currently have no programs in Nigeria. Our involvement is limited to regular dialogue, similar to what we have with countries like Japan or the UK.”

Mr. Selassie acknowledged the IMF’s guidance on public resource management and noted that while Nigeria requires significant investment in infrastructure, healthcare, and education, the government’s decision to remove subsidies aligns with its long-term goals for sustainable economic growth. “Ultimately, these are critical domestic and political decisions for the government,” he stated, indicating that the IMF views these actions as progress toward more efficient use of public resources.

Recognizing the economic challenges faced by Nigerians, Mr. Selassie urged the government to implement social investments to assist vulnerable groups during this transition. “We understand the substantial social costs involved,” he remarked. “The government can alleviate these by enhancing social protections for those most at risk.”