The International Monetary Fund (IMF) has dismissed suggestions that it played a role in President Bola Tinubu’s administration’s decision to remove fuel subsidy.
Abebe Selassie, its director for the African Region, stated this while speaking at the IMF and World Bank annual meetings in Washington, D.C.
IMF’s reaction followed widespread criticism of Nigeria’s fiscal reforms, which have triggered inflation and increased economic hardship for many citizens.
The petrol pump price at filling stations rose between N197 to the current price of N1,200 and N1,300, while naira has dropped to as low as N1,700 on the black market.
Selassie stressed that IMF’s involvement with Nigeria is limited to routine economic dialogue rather than policy mandates, Vanguard reports.
He said:
Selassie acknowledged the IMF’s guidance on managing public resources but emphasised that the subsidy removal was part of the Nigerian government’s strategy for economic sustainability.
He added:
Selassie noted that such measures aim to improve public resources for Nigeria’s development.
While recognising the immediate challenges posed by the reform, Selassie urged the Nigerian government to consider implementing social support systems to ease the burden on vulnerable groups.
He said:
TimesNow.com.ng earlier reported that the Central Bank of Nigeria’s efforts to clear foreign exchange backlogs and recent interest rate hikes were credited with stabilising the naira.
The naira’s struggles has been a subject of intense concerns among stakeholders in the country.
Proofreading by James, Ojo Adakole, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
