Petrol subsidy, floating of naira: We stand by our advice to FG – IMF

The International Monetary Fund (IMF) says it stands by its advice to Nigeria to remove petrol subsidy and float the exchange rate.

Daily Trust reports that the Bretton Woods institutions have been accused of advising President Bola Tinubu on the present economic policies, especially the removal of subsidy from PMS as well as the floating of the naira which have plunged the country into inflationary pressures.

But the IMF’s African Region Director, Abebe Selassie at a briefing on the sidelines of the IMF and World Bank Annual Meetings in Washington DC, US, had said the organisation did not advise the President to remove fuel subsidy.

“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 had clarified.

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However, according to PremiumTimes, an IMF spokesperson in response to its enquiry on Wednesday, said the institute stands by its advice to the Tinubu-led government.

“We stand by our advice, though it’s important to underscore that individual pieces of that advice cannot be viewed in isolation.

“Our advice is a comprehensive policy package where all elements are linked to each other. That package seeks to ensure macroeconomic stability and raise living standards in a sustainable fashion.

“Importantly, our advice on petrol subsidies and the exchange rate, is set in a larger, comprehensive policy mix that also includes scaling up social transfers to provide relief to Nigerians who are already suffering from a cost-of-living crisis or who are impacted by policy reforms,” the spokesperson was quoted as saying.

Also, the spokesperson referenced the IMF’s 2024 report on Nigeria, published in May, in which the global institution’s executive directors “welcomed the bold reforms implemented by the new administration and commended the authorities’ focus on revenue mobilization, governance, social safety nets, and upgrading policy frameworks in the face of Nigeria’s significant economic and social challenges.”