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…
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.
Written by urgent.news from Daily Post Nigeria's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
