By Maryanne Awuya
The International Monetary Fund (IMF) has advised the Federal Government against restoring blanket petrol subsidies, urging it to provide targeted assistance to poor and vulnerable Nigerians struggling with rising fuel costs.
The Fund’s Director of Fiscal Affairs, Rodrigo Valdés, gave the advice during a press briefing on the Fiscal Monitor at the 2026 IMF and World Bank Annual Meetings in Bangkok, Thailand.
Valdés said blanket subsidies put pressure on government finances and often benefit higher-income earners more than poorer households.
“Protecting people is not the same as protecting the price of fuels,” he said.
He explained that fuel subsidies and measures that prevent energy prices from adjusting fully to market conditions cost countries between one and 1.5 per cent of their Gross Domestic Product (GDP) in 2026.
Rather than subsidising fuel prices for everyone, the IMF official called on governments to use social safety nets and household data to identify those who need support.
The recommendation comes as rising petrol prices in Nigeria continue to raise concerns over transportation costs, inflation and the cost of living.
Per Second News reported that the Federal Government had recently announced a 30-day petrol discount at Nigerian National Petroleum Company (NNPC) Limited retail stations, with priority given to public transport operators.
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