‘It’s Regressive’ – IMF warns Nigeria against restoring petrol subsidy

The International Monetary Fund (IMF) has advised Nigeria against restoring broad petrol subsidies, recommending targeted financial assistance and social protection programmes to cushion vulnerable households against rising energy costs.

The fund said blanket fuel subsidies were fiscally expensive, disproportionately benefited higher-income consumers and could worsen pressure on public finances amid rising borrowing costs.

Rodrigo Valdés, director of the IMF’s Fiscal Affairs Department, gave the advice during a press briefing on the fund’s Fiscal Monitor at the 2026 annual meetings of the IMF and World Bank in Bangkok, Thailand, on Wednesday.

Valdés was responding to a questio...