IMF denies involvement in Nigeria’s fuel subsidy removal

The International Monetary Fund (IMF) has clarified that it did not influence the Nigerian government’s decision to remove fuel subsidies.

The clarification comes amidst growing criticism of the IMF in relation to Nigeria’s fiscal policies, which have resulted in rising inflation and increased hardship for many citizens.

During a press conference at the IMF and World Bank Annual Meetings,  Abebe Selassie, the IMF’s African region director, emphasised that the subsidy removal was a domestic decision.

“We don’t have programs in Nigeria. Our role is limited to regular dialogue, akin to our interactions with nations like Japan or the UK,” he said.

This clarification aims to alleviate some of the backlash the IMF has faced, particularly as the country grapples with the consequences of these fiscal reforms. Citizens have expressed concerns over the escalating cost of living, directly linked to subsidy removals that have disproportionately impacted the vulnerable.

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Selassie acknowledged that while the IMF has offered guidance on public resource management, the ultimate decisions regarding subsidy policies lie with the Nigerian government.

“Nigeria requires substantial investment in infrastructure, healthcare, and education. However, the choices made regarding subsidy removal are reflective of the government’s long-term strategy for sustainable economic growth,” he stated.

Recognising the economic strain on Nigerians, Selassie urged the government to implement robust social investment programs aimed at supporting the most vulnerable populations during this transition. “We understand the significant social costs involved,” he said. “To alleviate these challenges, the government can expand social protection measures.”

As Nigeria navigates these tumultuous economic waters, the IMF’s emphasis on domestic decision-making underscores the complex interplay of local governance and international guidance. Citizens and stakeholders alike are waiting patiently to experience how the government balances fiscal responsibility with the immediate needs of its populace.