The global financial body said it never advised the Nigerian government to remove fuel subsidy, contrary to widespread insinuations.
It would be recalled that President Tinubu, in his inaugural speech on May 29, 2023, declared “subsidy is gone,” a pronouncement that immediately sparked a chain of economic reactions across the country.
The declaration led to a sharp increase in the price of Premium Motor Spirit, PMS, from N185 per litre to over N1,200 per litre at the moment, while also contributing significantly to the rising inflation rate, which has now spiralled to 32.7 percent.
The Tinubu-led administration also floated the naira and removed subsidy on electricity as part of its economic reform agenda.
Speaking with journalists on the sidelines of the 2024 IMF and World Bank Annual Meetings in Washington DC, the IMF Director of African Region, Abebe Selassie, said the decision to remove subsidies in Nigeria was entirely a domestic one.
According to him, the removal was President Tinubu’s personal decision and not influenced by the IMF.
“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,” Abebe said.
The IMF African Region Director, however, lauded the reform policies of the Federal Government, describing them as bold and necessary for long-term economic stability.
He also advised the government to roll out more social intervention programmes to cushion the effects of the reforms on vulnerable Nigerians.
“We recognize the significant social costs involved,” Abebe said. “The government can mitigate these by expanding social protection for the most vulnerable.”
