The International Monetary Fund (IMF) has denied involvement in Nigeria’s recent decision to remove fuel subsidies, emphasizing that it was an independent choice by the Nigerian government.
The IMF cautioned Nigerian authorities against using the organization’s name to justify domestic policy decisions, amid public backlash over rising inflation and economic challenges following the subsidy removal.
This statement addresses mounting criticism suggesting IMF pressure on recent Nigerian economic policies, which have led to rising inflation and widespread financial hardship.
At the IMF and World Bank Annual Meetings in Washington, DC, Mr. Abebe Selassie, IMF Director for the African Region, stressed the organization’s non-involvement. “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 explained.
While acknowledging the IMF’s advisory role on effective public resource management, Selassie emphasized that the subsidy removal aligns with Nigeria’s broader strategy for sustainable economic growth. Such policy decisions, he noted, are often shaped by a country’s unique domestic and political circumstances and are critical for more efficient public resource utilization.
Selassie acknowledged the economic strain these changes place on Nigerian citizens and encouraged the Nigerian government to strengthen social investments to ease the impact on vulnerable populations. “We recognize the significant social costs involved,” he said, urging Nigeria to expand its social protection measures to support those most affected by the policy shift.
