The International Monetary Fund (IMF) has advised the Federal Government to prioritize building a social safety net to protect vulnerable citizens from the impact of the recent petrol price hike. In an interview with Arise TV, IMF Resident Representative in Nigeria, Dr. Christian Ebeke, expressed concern that Nigerians are facing significant hardship due to multiple shocks, including high inflation and devastating floods.
While acknowledging that petrol prices are still below market rates, Ebeke emphasized the need for social protection to cushion the impact of price adjustments on the poor. He praised the Federal Government’s program aimed at reaching 15 million households but urged acceleration and transparency in its implementation.
Experts agree with the IMF’s position, noting that fuel subsidies strain government resources but serve as a buffer against high living costs. They stress the need for adequate cushioning mechanisms to prevent worsening economic hardship.
The IMF also expressed concerns about the country’s revenue-to-GDP ratio, one of the lowest in the world, and emphasized the importance of raising revenue to finance development spending. The 2025 budget is seen as a critical milestone in setting priorities for macro stability and growth.
Overall, the IMF’s advice highlights the need for a balanced approach to economic reforms, considering both price adjustments and social protection for the vulnerable population.
Vanguard.
