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As the Nigerian oil industry struggles to find its footing amidst ongoing pricing and supply challenges, the IMF is urging the Federal Government to take proactive steps to establish a far-reaching social safety net that will protect the country’s most vulnerable populations from the worst of the economic storm.
Yesterday, on Arise TV, Dr. Christian Ebeke, the IMF’s Nigeria chief, delivered a sobering message, suggesting that petrol prices may not be out of the woods yet, as they continue to sell below market value, leaving room for potential future adjustments.
Notably, the Nigerian National Petroleum Company Limited (NNPCL) has echoed this sentiment, also advocating for a market-driven approach to petrol pricing, further fueling speculation about potential price adjustments.
Dr. Christian Ebeke, the IMF’s Resident Representative in Nigeria, voiced concerns about the widespread hardship faced by Nigerians as a result of policies implemented by the current Federal Government, highlighting the need for more effective measures to mitigate the suffering.
Ebeke stated: “I think this upward adjustment of petrol price at the pump comes at a time Nigerians are already feeling significant hardship.
“There is a lot of pain for Nigerians coming from multiple shocks, compounded shocks, including high inflation, high food inflation. Now, the country is dealing with devastating floods, among others.
“So the upward adjustment to pump rice comes at that particular moment when the economy is also dealing with multiple shocks and Nigerians are feeling this pain.
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“I would advise that as we clearly stated in our annual review of the Nigerian economy which we published in May and our advice is very clear.
“It is important to strengthen social protection in Nigeria. It is important to accelerate the mechanism and the disbursement of this support to the most vulnerable, so they can cope with this multiple shocks they are actually facing now.
“The programme the Federal Government has is reaching out to 15 million households, this is the way to go. This programme should be accelerated, cushioning the impact of the pump price policy on the most vulnerable is the immediate priority.
Supporting the earlier position of the NNPCL that the current pump prices of petrol were not yet market reflective, Ebeke said: “I think the starting point should be to ensure that there is enough supply stability of this product. The queues that we see at gas stations needs to be addressed.
“We also understand that for a long time, price at the pump has not been reflective of market conditions and this led to challenges to petrol supply and challenging situation also falls for NNPC.
The IMF official underscored the importance of being aware of the potential repercussions of these adjustments on the most vulnerable groups, highlighting the need to concentrate on swiftly intensifying support to help them navigate these challenging times.