The International Monetary Fund has advised the federal government to completely remove fuel and electricity subsidies in early 2022.
The Washington-based Organisation noted that the removal of “retrogressive” fuel and electricity subsidies should be considered a priority as part of the government’s fiscal policy.
In its preliminary findings at the end of its official staff visit to the country under the Article IV Mission, IMF also called for reforms in the fiscal, exchange rate, trade and governance aspects of Nigeria.
The IMF noted that Nigeria’s past experiences with fuel subsidy removal, which have all been short-lived and reversed, underscore the importance of building a consensus and improving public trust regarding the protection of the poor and efficient and transparent use of the saved resources.
Senior Advocate of Nigeria, Femi Falana, reacting to the development, said the IMF has no right to tell Nigeria how to run its affairs.
