Fuel Subsidy Controversy: IMF Accuses Tinubu Administration of Stealthy Re-Introduction

Ilesanmi AdekanbiFebruary 14, 2024

1 minute read

In a surprising twist, the administration of President Bola Tinubu is under scrutiny for allegedly reinstating fuel subsidies in Nigeria covertly, contradicting the earlier announcement of ending the subsidy regime in 2023. The International Monetary Fund (IMF) made this accusation over the weekend, asserting that the government has capped fuel prices at retail stations as a backdoor approach to subsidy reintroduction.

President Tinubu, in his inauguration speech, had emphatically declared an end to the fuel subsidy, emphasizing its detrimental impact on the nation’s economy. However, the IMF claims that the recent capping of retail fuel and electricity prices is a tactical move by the government to alleviate the impact of soaring inflation, essentially reversing the earlier subsidy removal.

This maneuver has sparked concerns, as it seems to be contributing to a persistent rise in petrol prices, with most filling stations now selling above N600 per liter. The ripple effect has been felt across various sectors, leading to elevated prices for essential items and transportation, burdening many Nigerians.

The IMF, while addressing Nigeria’s Executive Board, urged the Tinubu administration to halt the payment of subsidies altogether, emphasizing the need to redirect funds for governmental operations. A September investigation disclosed that the federal government paid N169.4 billion in August to maintain the pump price at N620 per liter, revealing complexities in the subsidy payment system.

This controversy raises questions about the government’s commitment to economic reforms and transparency. As Nigerians grapple with the economic fallout, the allegations against the Tinubu administration demand further scrutiny and a comprehensive response.