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The International Monetary Fund (IMF) says it played no role in the removal of fuel subsidy by the President Bola Tinubu administration.
It made the clarification at a press conference during the IMF and World Bank Annual Meetings in Washington DC, United States.
Abebe Selassie, IMF’s African Region Director, described the decision to remove fuel subsidy by Tinubu’s government as a domestic one.
Read Also: Naira Appreciates To End Business Week On Positive Note
“The decision was a domestic one. We don’t have programmes in Nigeria. Our role is limited to regular dialogue, as we have with other nations like Japan or the UK,” the official said, according to Newsmen.
However, Selassie argued that the government’s choices regarding subsidy removal reflect its long-term strategy for sustainable economic growth.
“We recognise the significant social costs involved. The government can mitigate these by expanding social protection for the most vulnerable,” he said in reference to Nigerians affected by the impact of subsidy removal.
Tinubu had announced that subsidy was gone on May 29, 2023.
The development has led to an astronomical hike in the fuel pump price, with a litre selling for over N1000 as of the time of this report.
Many Nigerians had accused the government of following IMF policies in implementing total subsidy removal.
The naira appreciated consecutively against the dollar at the official foreign exchange market to close the week on a good note.
FMDQ Data showed that the naira gained slightly at ₦1600 per dollar on Friday from ₦1601.20 exchanged on Thursday.
Friday’s gain is the second time the naira has appreciated in the week under review.
However, the naira shed its value three times against the dollar this week.
In comparison with the exchange rate of ₦1600.78 per dollar last Friday, the country’s currency gained N0.78 at the close of the week under review.
Meanwhile, at the black market, the naira lost ₦15 to close at N1740 per dollar after starting the week with ₦1725.
