IMF Denies Role in Nigeria’s Fuel Subsidy Removal

The International Monetary Fund (IMF) has clarified that it played no part in the removal of fuel subsidies by the administration of President Bola Tinubu.

The IMF made the statement during a press conference at the IMF and World Bank Annual Meetings held in Washington, D.C., United States.

Abebe Selassie, Director of the IMF’s African Department, emphasized that the decision to end fuel subsidies was entirely domestic.

“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,” Selassie said, as quoted by *Vanguard*.

Selassie acknowledged the social costs of the subsidy removal but noted that the government’s decision aligns with its long-term economic strategy.

“We recognise the significant social costs involved. The government can mitigate these by expanding social protection for the most vulnerable,” Selassie added, referring to the impact on Nigerians.

President Tinubu had announced the removal of the fuel subsidy on May 29, 2023, during his inaugural speech.

The decision resulted in a sharp rise in fuel prices, with a litre now selling for over N1,000 as of the time of this report.

Public backlash has followed the policy shift, with many Nigerians accusing the government of implementing IMF-influenced policies by fully eliminating the subsidy.