The International Monetary Fund (IMF) has denied influencing President Bola Tinubu’s administration’s decision to remove fuel subsidies in Nigeria.
Abebe Selassie, IMF’s African Region Director, clarified at the IMF and World Bank Annual Meetings in Washington DC that the decision was purely domestic.
“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 stated.
He acknowledged the significant social costs involved and advised the government to expand social protection for the most vulnerable Nigerians affected by the subsidy removal.
“We recognise the significant social costs involved. The government can mitigate these by expanding social protection for the most vulnerable,” Selassie said.
The subsidy removal was announced by President Tinubu on May 29, 2023, resulting in fuel prices soaring to over N1000 per litre.
Many Nigerians had speculated that the government’s decision was driven by IMF policies, but Selassie emphasized that the government’s choices reflect its long-term strategy for sustainable economic growth.
Some Nigerians have expressed dissatisfaction with the government’s decision, citing concerns about the economic impact. However, others, like tundegan, believe that “Tinubu is a leader with vision, and he will be vindicated in the long run”.
