IMF Opposes Return of Petrol Subsidy, Experts and Labour Demand Accountability

The International Monetary Fund has advised the Federal Government against restoring a general petrol subsidy. It recommends targeted financial support for low-income households facing high energy costs instead of keeping fuel prices low for everyone. At the IMF and World Bank annual meetings in Bangkok, the Fund said broad fuel subsidies are costly, often benefit wealthier consumers more, and can worsen pressure on public finances. It estimated that fuel subsidies and similar energy-price controls cost countries between 1 and 1.5 per cent of GDP in 2026. Economist Ndubisi Nwokoma said Nigeria should not accept the IMF’s advice without examining local conditions. He argued that the key issue is whether savings from subsidy removal are being used to improve lives. The CPPE backed removal but supported temporary targeted relief, while the NLC called for the policy to be reversed or substantially reviewed over worsening hardship.

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