The International Monetary Fund (IMF) advises Nigeria against restoring a broad, blanket petrol subsidy amid rising fuel prices. Multiple outlets report that the IMF instead calls for support to be targeted to households most affected by the cost increases, rather than subsidizing fuel broadly.
The IMF argues that blanket fuel subsidies are fiscally expensive and can be “regressive,” meaning they tend to benefit higher-income consumers disproportionately. Sources also say the IMF warns that such subsidies would add to fiscal pressures, particularly as Nigeria faces rising borrowing costs. As an alternative, the IMF recommends shifting resources toward targeted programmes, including assistance for vulnerable people and expanded or better-focused social welfare measures.
Some reports further specify types of targeted relief, including support for vulnerable groups such as poor households, and in one account, measures like subsidising or supporting public transportation and helping vulnerable farmers. Across outlets, the core message remains consistent: replace broad fuel subsidies with targeted social and economic support to reduce harm while limiting strain on public finances.
