Nigerians React As IMF Claims Tinubu-Led Government Has Secretly Returned Fuel Subsidy

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February 14, 2024
News

SaharaReporters had days ago reported that the IMF called on Tinubu’s government to ensure a complete phase-out of fuel and electricity subsidies despite the rising inflation and high cost of living in the country.

There have been mixed reactions by Nigerians as the International Monetary Fund (IMF) confirmed that the President Bola Tinubu-led Nigerian government has secretly restored the payment of subsidies on the premium motor spirit (PMS), popularly known as fuel.

SaharaReporters had days ago reported that the IMF called on Tinubu’s government to ensure a complete phase-out of fuel and electricity subsidies despite the rising inflation and high cost of living in the country.

The organisation had noted that Tinubu adopted two policy reforms that its predecessors had shied away from: fuel subsidy removal and the unification of the official exchange rates.

Former President Goodluck Jonathan tried to remove fuel subsidy during his administration but Nigerians kicked against it through Occupy Nigeria protests. His successor, Muhammadu Buhari also tried to do so but pushed it till he left office.

Tinubu in his inaugural address as President announced the removal of fuel subsidy and that his administration would unify exchange rates.

However, these policies have pushed up inflation rate and brought hardship on Nigerians.

The international financial institution highlighted that Nigeria is grappling with a compounding cost-of-living crisis, worsened by stagnant per-capita growth, poverty, and heightened food insecurity, it, however, said subsidies on fuel and electricity are costly and don't benefit those that mostly need government support.

Daily Trust reports that the IMF in its latest statement, said the Tinubu-led administration has “capped retail fuel and electricity prices” ostensibly to “ease the impact of rapidly rising inflation on living conditions, thus partially reversing the fuel subsidy removal.”

Following the global lender’s confirmation of the return of fuel subsidy by the same government that removed it, many Nigerians on X (formerly Twitter) have reacted differently to the IMF statement.

An X user, @Uncle_Onos said, “How can Tinubu remove fuel subsidies at N185 per litre and reintroduce it when fuel is still selling at over N600 per litre?

“I want to believe this is not true cos I can’t even imagine it happened.”

For @ChimaGabriel31, “Subsidy was never removed in the first place. What they did was cut down the amount they were paying as subsidy. Assuming they were paying N1000 as subsidy to keep fuel at N180, they're now paying N300 as subsidy to keep fuel at N600 that is what actually happened.”

@journalofOCO said, “Once again, as long as the people in power are dishonest, this fuel subsidy issue will continue to be a bone in our throat. For those who say the President doesn’t matter, know that the continued support of dishonest people will lead to the continued destruction of the country.”

For @Andrew_Eneyi, “The inconsistencies and lies under this government is so shameful. So subsidy is actual not gone and we are suffering like this in Nigeria.”

While @iam_realjayson said, “I would really like to know the mathematics behind this… Fx is on a free fall, while PMS pump price is relatively stable. Miracle really no dey tire Jesus.”

Another X user, @Jay_M85 said that “Nothing surprises me about Nigeria anymore. Inside one surprise another bigger surprise Dey inside,” and @MoraOgo said, “Don’t mind IMF, Nigerians can’t afford to buy fuel for 1’500 per litre.”

For @ourt_destiny, “It’s why fuel hasn’t spiked to 1k per liter while everything else has spiked up in price.”

While @Manseey wrote, “Lol. So the removal was a scam in the first place. Tell me something I don’t know about Nigeria.”

Also, @TimiTheAce said, “I have a conspiracy theory that these guys are still subsidizing this fuel price because they know if they sell it at the actual price or anything greater than the current price, they’d be an outrage and the whole of Nigeria would fight back. They’ve not even increased it sef…”

For @tangledthug, “There is no country in the world that does not subsidize when item or the other I don’t understand IMF stand than Nigeria must remove all form of subsidy, this is not fair.”

While @Pauly2570 said that “As long as they keep listening to those international money lenders coupled with the profligacy, the country will continue to deep into economic crisis.”
 

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