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IMF Denies Role in Nigeria’s Fuel Subsidy Removal

Kehinde Fajobi

The International Monetary Fund (IMF) has stated that it did not influence Nigeria’s decision to remove fuel subsidies, clarifying that the policy was initiated solely by the Nigerian government.

This clarification follows criticism suggesting the IMF played a role in fiscal reforms that have led to rising inflation and hardship for many Nigerians.

During a press conference at the IMF and World Bank Annual Meetings in Washington, DC, IMF African Region Director, Abebe Selassie, explained, “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 highlighted that, while the IMF provides general guidance on the management of public resources, Nigeria’s government made its own choices to align with a broader strategy aimed at sustainable economic growth.

“Ultimately, these are profound domestic and political decisions that the government had to make,” he said, adding that these steps reflect the country’s commitment to more efficient public resource allocation.

Acknowledging the economic impact of these reforms, Selassie urged the Nigerian government to implement measures to support those affected, particularly the most vulnerable.

“We recognize the significant social costs involved,” he noted. “The government can mitigate these by expanding social protection for the most vulnerable.”

According to Selassie, Nigeria faces significant investment needs across various sectors, including infrastructure, healthcare, and education.

However, he stressed that the IMF sees subsidy removal as part of a necessary path toward improving the nation’s fiscal stability.

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