IMF Warns Nigeria Govt On Subsidy Return
The International Monetary Fund has warned Nigeria not to return to fuel subsidies despite rising living costs and economic pressure.
The warning comes as global oil prices climb due to tensions linked to Middle East negotiations, pushing up crude benchmarks above Nigeria’s budget assumptions.
The IMF said Nigerians may face more pressure in the coming months as food and transport costs continue to rise.
It noted that although higher oil prices could boost government revenue, most citizens are unlikely to feel any relief due to inflation and structural challenges.
Officials said transport costs are already driving up food prices across cities and rural areas.
The fund also urged the Nigerian government under President Bola Ahmed Tinubu to maintain its ongoing reforms, including fuel subsidy removal and exchange rate adjustments.
It warned that reversing these policies could worsen fiscal stability and reduce the country’s ability to respond to future shocks.
It added that stronger revenue systems, tighter spending control, and better communication with citizens are needed to manage the crisis.
