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IMF: Removing fuel subsidies will help impoverished Nigerians

According to the International Monetary Fund (IMF), Nigeria’s impoverished citizens will profit from President Bola Tinubu’s decision to eliminate fuel subsidies.

 

This was said by Abebe Selassie, the director of the IMF’s African Department, during the IMF/World Bank Spring Meeting in Washington, DC.

 

The international lender stated that the Nigerian government had to stop providing fuel subsidies notwithstanding the hardships facing the nation.

 

Fuel subsidies, in Salessie’s opinion, solely benefit the wealthy and depress the poor.

 

Citing the detrimental effects of fuel subsidies on the most vulnerable inhabitants of the country, he emphasized the necessity for Nigeria to do away with them.

Selassie contended that the wealthiest gain the most from these subsidies, while the poor lose out.

 

“The distribution of resources within Nigeria is the subject of subsidies. Therefore, the Nigerian people are responsible for funding these subsidies,” he stated.

 

And we advise against these kinds of broad subsidies for a very straightforward reason. Fuel subsidies have a tendency to be very regressive, which means that the wealthy typically profit more from them than the poor.

 

He argued that instead of disproportionately benefiting the wealthy, funds should be reallocated to improve conditions for less fortunate people if fuel subsidies were removed.

He implored the Tinubu administration to provide the most vulnerable members of society’s basic social protection first priority.

Written by schooleiwa

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