The International Monetary Fund (IMF) has stated that it did not influence the decision to remove the fuel subsidy by the administration of President Bola Tinubu.
This clarification was made during a press conference held at the IMF and World Bank Annual Meetings in Washington, D.C., United States.
Abebe Selassie, the IMF’s Director for the African Region, characterized the decision to eliminate the fuel subsidy as a domestic matter.
He remarked, "The decision was a domestic one. We do not have programs in Nigeria. Our role is confined to regular dialogue, as we maintain with other nations such as Japan or the United Kingdom," as reported by Circleson Television.
However, Selassie emphasized that the government's decision to remove the subsidy aligns with its long-term strategy for sustainable economic development.
He acknowledged the significant social costs associated with this policy change, stating that the government can alleviate some of these effects by enhancing social protection measures for the most vulnerable segments of the population.
It is noteworthy that President Tinubu announced the suspension of the subsidy on May 29, 2023.
This policy shift has resulted in a substantial increase in fuel prices, with a liter selling for over N1000 at the time of this report.
Many Nigerians have accused the government of adhering to IMF policies in its implementation of the subsidy removal.
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