IMF Denies Role in Nigeria’s Fuel Subsidy Removal, Calls It a Domestic Decision
The International Monetary Fund (IMF) has clarified that it did not influence the Nigerian government’s decision to remove fuel subsidies, describing the move as a strictly domestic choice. The statement was made by Abebe Selassie, IMF’s African Region Director, during a press conference at the IMF and World Bank Annual Meetings in Washington, D.C.
Selassie explained that the IMF’s relationship with Nigeria is based on routine consultations rather than direct intervention, similar to its engagements with countries like Japan or the UK. “The decision was a domestic one,” he stated, refuting claims that IMF policies led to the subsidy removal under President Bola Tinubu’s administration.
While acknowledging the significant impact of subsidy removal on Nigerians, Selassie noted that the IMF supports the decision as a strategy for redirecting public resources into essential sectors such as healthcare, education, and infrastructure. He emphasized that the subsidy removal is aligned with the government’s long-term goals for sustainable economic growth, adding, “Ultimately, these are profound domestic and political decisions that the government had to make.”
The IMF official highlighted the importance of expanding social protection to cushion the impact on vulnerable Nigerians, advocating for measures to address the “significant social costs” of the policy shift.
President Tinubu announced the end of the subsidy on May 29, 2023, which led to a sharp rise in fuel prices, reportedly exceeding N1000 per litre. Despite criticism that the move followed IMF directives, the IMF has maintained that the decision was taken solely by the Nigerian government.
