IMF Urges Nigeria to Reject Broad Petrol Subsidy Return
The fund said broad fuel subsidies are costly and regressive, and estimated they cost countries 1% to 1.5% of GDP in 2026.
- On Wednesday, the International Monetary Fund warned Nigeria against restoring broad petrol subsidies during a press briefing in Bangkok, Thailand, recommending targeted financial assistance for vulnerable households instead.
- Subsidy debates have intensified in Nigeria ahead of January elections, with opposition candidates Atiku Abubakar of the ADC and Peter Obi of the NDC promising restoration, while President Bola Tinubu defended subsidy removal as vital to fiscal survival.
- Rodrigo Valdes, Director of the IMF's Fiscal Affairs Department, stated subsidies are fiscally expensive and regressive; "Protecting people is not the same as protecting the price of fuels," Valdes said, noting they cost countries up to 1.5% of GDP in 2026.
- The Federal Government recently announced a 30-day petrol discount at Nigerian National Petroleum Company Limited retail stations, which Finance Minister Taiwo Oyedele described as temporary relief rather than a return to broad subsidies.
- Instead of blanket subsidies, the IMF suggested governments adopt targeted alternatives like subsidizing bus fares, school feeding programs, or assistance for vulnerable farmers to protect households while allowing energy prices to reflect market conditions.
18 Articles
18 Articles
IMF advises Nigeria against restoring blanket petrol subsidy
The IMF has advised Nigeria against restoring blanket petrol subsidy, urging the government to instead channel support towards vulnerable citizens. Read More: https://punchng.com/imf-advises-nigeria-against-restoring-blanket-petrol-subsidy/
Nigeria: 'It's Regressive' - IMF Warns Nigeria Against Restoring Petrol Subsidy
The International Monetary Fund (IMF) has advised Nigeria against restoring broad petrol subsidies, recommending targeted financial assistance and social protection programmes to cushion vulnerable households against rising energy costs.
Don't return fuel subsidy - IMF warns FG
The International Monetary Fund, IMF, has warned Nigeria against restoring broad petrol subsidy. According to TheCable, the IMF instead recommended targeted support for vulnerable households to cushion the impact of rising energy costs. The international financial body said blanket petrol subsidies were expensive, often benefited higher-income consumers disproportionately and could worsen fiscal pressures amid rising […] Don’t return fuel subsid…
'It's regressive' - IMF warns Nigeria against restoring petrol subsidy
The International Monetary Fund (IMF) has advised Nigeria against restoring broad petrol subsidies, recommending targeted financial assistance and social protection programmes to cushion vulnerable households against rising energy costs. The fund said blanket fuel subsidies were fiscally expensive, disproportionately benefited higher-income consumers and could worsen pressure on public finances amid rising borrowing costs. Rodrigo Valdés, […]
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