Don’t restore fuel subsidy, IMF tells FG
The International Monetary Fund (IMF) has advised the Federal Government not to restore broad petrol subsidy, but deploy targeted support for vulnerable households to cushion the impact of rising energy costs. IMF argued that blanket petrol subsidies were expensive, often benefited higher-income consumers disproportionately and could worsen fiscal pressures amid rising borrowing costs. Rodrigo…
The International Monetary Fund (IMF) has cautioned Nigeria against reinstating a comprehensive petrol subsidy, proposing instead targeted assistance for disadvantaged households to mitigate the effects of escalating energy expenses, according to TheCable. The financial institution emphasized that blanket fuel subsidies are costly, often favor higher-income consumers, and could exacerbate fiscal pressures due to rising borrowing rates.
Though Nigeria's economy has shown significant advancement, the IMF cautioned that the benefits of growth remain unevenly distributed, leaving a large portion of the population in distress. The organization urged policymakers to strike a balance between addressing the immediate requirements of the population, encompassing food and energy security, and maintaining fiscal stability in the medium term.
"We are urging policymakers to balance the immediate needs of the population, which entails both food and energy security," the IMF stated.
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- Don’t return fuel subsidy – IMF warns FG dailypost.ng
