The International Monetary Fund (IMF) has warned Nigeria against reinstating blanket petrol subsidies, urging the government to instead offer targeted financial aid to vulnerable households.
In a statement to the Nigerian authorities, the IMF cautioned that a return to universal fuel subsidies could undermine fiscal stability and hamper the country’s economic recovery.
Nigeria, Africa’s most populous nation, has long subsidised petrol to keep prices low for consumers, but the cost of these subsidies has put pressure on the national budget.
According to the IMF, a more sustainable approach would be to direct assistance to the most vulnerable households rather than maintaining a blanket subsidy for all motorists.
The warning arrives as Nigeria continues to grapple with debt management and broader economic challenges, prompting policymakers to seek more targeted and fiscally responsible solutions.
<small>Source: Punch Nigeria — read the original story there.</small>