JUST IN: IMF Denies Influence on Nigeria’s Decision to Remove Fuel Subsidy

The International Monetary Fund (IMF) has clarified that it was not responsible for Nigeria’s recent decision to remove fuel subsidies, emphasizing that this was an independent decision by the Nigerian government.

The IMF has faced criticism amid Nigeria’s fiscal reforms, which have led to rising inflation and increased economic hardship for citizens. Addressing the issue during a press conference at the IMF and World Bank Annual Meetings in Washington, D.C., IMF African Department Director Abebe Aemro Selassie explained, “The decision was a domestic one. We don’t have programs in Nigeria. Our role is limited to regular dialogue, as we have with other nations like Japan or the UK.”

Selassie noted that while the IMF provides guidance on public resource management, it respects Nigeria’s authority over its economic decisions. He acknowledged that the government’s removal of fuel subsidies reflects a long-term strategy aimed at fostering sustainable economic growth. “Ultimately, these are profound domestic and political decisions that the government had to make,” he said, adding that the IMF views the reforms as a step toward enhancing public resource efficiency.

Recognizing the economic burden on Nigerians, Selassie urged the government to increase social investments to protect vulnerable groups during the transition. “We acknowledge the significant social costs involved,” he stated. “The government can mitigate these by expanding social protection measures for the most vulnerable.”