SAHARA REPORTERS
SaharaReporters had days ago reported that the IMF called on Tinubu’s government to ensure a complete phase-out of fuel and electricity subsidies despite the rising inflation and high cost of living in the country.
There have been mixed reactions by Nigerians as the International Monetary Fund (IMF) confirmed that the President Bola Tinubu-led Nigerian government has secretly restored the payment of subsidies on the premium motor spirit (PMS), popularly known as fuel.
SaharaReporters had days ago reported that the IMF called on Tinubu’s government to ensure a complete phase-out of fuel and electricity subsidies despite the rising inflation and high cost of living in the country.
The organisation had noted that Tinubu adopted two policy reforms that its predecessors had shied away from: fuel subsidy removal and the unification of the official exchange rates.
Former President Goodluck Jonathan tried to remove fuel subsidy during his administration but Nigerians kicked against it through Occupy Nigeria protests. His successor, Muhammadu Buhari also tried to do so but pushed it till he left office.
Tinubu in his inaugural address as President announced the removal of fuel subsidy and that his administration would unify exchange rates.
However, these policies have pushed up inflation rate and brought hardship on Nigerians.
The international financial institution highlighted that Nigeria is grappling with a compounding cost-of-living crisis, worsened by stagnant per-capita growth, poverty, and heightened food insecurity, it, however, said subsidies on fuel and electricity are costly and don’t benefit those that mostly need government support.
Daily Trust reports that the IMF in its latest statement, said the Tinubu-led administration has “capped retail fuel and electricity prices” ostensibly to “ease the impact of rapidly rising inflation on living conditions, thus partially reversing the fuel subsidy removal.”
Following the global lender’s confirmation of the return of fuel subsidy by the same government that removed it, many Nigerians on X (formerly Twitter) have reacted differently to the IMF statement.
