IMF denies asking Tinubu to remove fuel subsidy

The International Monetary Fund (IMF) has denied being behind the removal of fuel subsidy in Nigeria.

Speaking on Friday at a press briefing on the sidelines of the IMF and World Bank Annual Meetings in Washington DC, United States, Abebe Selassie, IMF’s African Region Director, described the decision to remove fuel subsidy by President Bola Tinubu as a domestic one.

“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 said.

However, Selassie argued that the government’s choices regarding subsidy removal reflect its long-term strategy for sustainable economic growth.

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

During his inauguration in May 2023, President Tinubu declared that fuel “subsidy is gone”.

That pronouncement immediately led to a hike in the cost of the commodity across the country. From about N200 per litre, the product is selling for about N1,200 in several parts of the country.

Many Nigerians had accused the government of following IMF policies in implementing total subsidy removal.