IMF Exonerates Self, Says Fuel Subsidy Removal Was Tinubu’s Decision

The International Monetary Fund (IMF) has denied advising the Nigerian government to remove fuel subsidy, saying it was a decision taken by President Bola Tinubu.

It would be recalled that President Tinubu in his inaugural speech on May 29, 2023, had declared “subsidy is gone”, sparking a wave of actions and reactions that have seen the price of petrol rise from N185 per liter to N1,200 presently and contributing significantly to inflation which has spiralled to 32.7 per cent.

The Tinubu-led government had also floated the currency and removed subsidy on electricity.

IMF’s African Region Director, Abebe Selassie, speaking with journalists on the sidelines of the 2024 IMF and World Bank Annual Meetings in Washington DC, stated that the decision to remove subsidies in Nigeria was solely a domestic decision.

“The decision was a domestic one. It was President Tinubu’s decision. 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,” he said.

The IMF African Region Director has lauded the policies and wanted the Federal Government to roll out more programmes to protect vulnerable groups against the effects of the reforms.

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