Remove fuel subsidy, official exchange rate, IMF urges FG
Two weeks after the federal Government suspended the removal of petrol subsidy, the International Monetary Fund has again urged the Nigerian government to stop subsidizing fuel.
The Washington-based lender also asked the federal government had on January 24 suspended its plan to remove fuel subsidy this year. It also proposed to extend the subsidy removal implementation period by 18 months, saying it would engage the legislature for the amendment of the Petroleum Industry Act.
The IMF had in November last year stressed “the need to fully remove subsidies and move to a market based pricing in early 2022 as stipulated in the 2021 Petroleum Industry Act”.
The IMF welcomed the removal of the official exchange rate and recommended further measures towards a unified and market clearing exchange rate to help strengthen Nigeria’s external position, taking advantage of the current favourable conditions.
