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October 25, (THEWILL) – The International Monetary Fund (IMF) has said the removal of subsidy on petrol was a domestic decision made independently by the Nigerian government.
THEWILL reports that President Bola Tinubu, on May 29, 2023, announced the removal of subsidy on petrol.
Since the removal of petrol subsidy, Nigerians have witnessed hike in pump prices of fuel, which further compounded the rising cost of goods and services.
Public policy analysts and commentators have expressed outrage over rising food cost, inflation and value of Naira, blaming President Tinubu’s economic policies on the Brettonwoods institutions – the IMF and Word Bank.
Speaking at a press conference during the IMF and World Bank Annual Meetings in Washington DC, IMF’s African Region Director, Mr Abebe Selassie, said Nigeria’s decision regarding subsidy removal reflect its long-term strategy for sustainable economic growth.
Selassie, however, admitted the economic impact of President Tinubu’s economic reforms on Nigerians. He encouraged the Nigerian government to roll out social investments to help vulnerable groups manage the transition.
“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. Ultimately, these are profound domestic and political decisions that the government had to make.
“We recognise the significant social costs involved. The government can mitigate these by expanding social protection for the most vulnerable”, he added.
