IMF Advises Against Nigerian Petrol Subsidy Restoration Amid Fiscal Pressures

The International Monetary Fund (IMF) has advised the Nigerian Federal government against reinstating broad petrol subsidies, urging instead targeted assistance for vulnerable households to mitigate rising energy costs. This recommendation comes from the IMF’s Fiscal Affairs Department Director, Rodrigo Valdes, who presented it during the 2026 Annual Meetings in Bangkok.

Valdes emphasized that blanket petrol subsidies disproportionately benefit higher-income consumers and exacerbate fiscal pressures as borrowing costs rise. He noted such measures could cost countries 1 per cent to 1.5 per cent of GDP in 2026, according to IMF data.

The Federal Government recently introduced a 30-day petrol discount at NNPC Limited retail stations, prioritizing public transport operators to address fuel price impacts ahead of an election year.