The Presidency has said President Bola Tinubu is not looking back on his administration's decision to put an end to fuel subsidy payments.
This follows the International Monetary Fund (IMF) urging the Federal Government to resist calls to restore a broad petrol subsidy, recommending targeted assistance for vulnerable Nigerians to ease the impact of rising fuel prices.
The fund warned that blanket subsidies would place additional pressure on public finances while disproportionately benefiting higher-income earners.
Rodrigo Valdés, Director of the IMF’s Fiscal Affairs Department, gave the advice during a briefing on the fund’s Fiscal Monitor at the 2026 annual meetings of the IMF and World Bank in Bangkok, Thailand, on Wednesday.
His remarks came amid concerns that rising petrol prices could increase transport fares, worsen inflation and deepen poverty, as pressure mounts on the government to restore the subsidy ahead of the 2027 general election.
“Protecting people is not the same as protecting the price of fuels,” Valdés said, arguing that governments should prioritise assistance for households most affected by rising energy costs rather than suppressing fuel prices for everyone.
He said fuel subsidies and other measures that prevented energy prices from adjusting fully to supply shocks had cost countries between one and 1.5 per cent of gross domestic product in 2026.
“It’s first fiscally very costly, and second, if you look at the pattern of consumption, it’s easy to see that that subsidy is readily regressive in many places,” he said.
Reacting, presidential spokesperson Sunday Dare said Tinubu's administration is focused on reversing past distortions and introducing new, dynamic policies and programs.
He wrote on X, "President Tinubu is not looking back. No matter the crackles and noise of the opposition. President Tinubu is laying the foundation for a stronger economy by reversing the distortions of the past and introducing new and dynamic policies and programs."
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