- IMF stated that the Tinubu’s government independently made the decision to do away with fuel subsidy
The International Monetary Fund (IMF) has denied advising the President Bola Tinubu administration to remove fuel subsidy.
The global lender said it does not have a say on the fiscal, monetary and macroeconomic policies of any nation.
Speaking at a press conference during the IMF and World Bank Annual Meetings in Washington DC, United States, Abebe Selassie, IMF’s African Region Director, stated that the Tinubu’s government independently made the decision to do away with fuel subsidy.
He described the move to remove subsidy on petrol 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,” the official said, according to Vanguard.
However, Selassie argued that the government’s choices regarding subsidy removal reflect its long-term strategy for sustainable economic growth.
“We recognise the significant social costs involved. The government can mitigate these by expanding social protection for the most vulnerable,” he said in reference to Nigerians affected by the impact of subsidy removal.
Recall that Tinubu announced that subsidy was gone on May 29, 2023.
The move triggered galloping inflation and cost of living crisis as the fuel pump price jumped to N600 and now currently sells for over N1000.
Many Nigerians had accused the government of following IMF neoliberal economic policies in implementing total subsidy removal