The International Monetary Fund (IMF) has warned Nigeria against restoring a blanket petrol subsidy, urging the Federal Government to provide targeted financial support to vulnerable households struggling with rising fuel prices.
The Fund said broad fuel subsidies put pressure on public finances and often benefit wealthier consumers more than low-income households.
The Director of the IMF’s Fiscal Affairs Department, Rodrigo Valdés, gave the advice during a briefing on the Fiscal Monitor at the 2026 IMF-World Bank Annual Meetings in Bangkok.
He was responding to concerns that rising petrol prices could increase transport fares, fuel inflation and worsen poverty in Nigeria as calls grow for the government to restore the subsidy ahead of an election year.
“Protecting people is not the same as protecting the price of fuels,” Valdés said.
He noted that fuel subsidies and other measures that prevent energy prices from reflecting market shocks would cost countries between one and 1.5 per cent of gross domestic product (GDP) in 2026.
The IMF recommended using social safety nets and household data to identify vulnerable citizens and direct assistance to those who need it most.
Meanwhile, the Federal Government has announced a 30-day petrol discount at Nigerian National Petroleum Company Limited retail stations, NNPCL with priority given to public transport operators to ease the impact of rising fuel prices.
By News Scope Africa
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