By George Omagbemi
ABUJA, Nigeria | October 14, 2026. The International Monetary Fund (IMF) has advised the Federal Government against restoring a broad petrol subsidy, recommending targeted financial support for vulnerable households as rising fuel prices intensify pressure on Nigerians.
The Fund’s position was outlined by Rodrigo Valdés, Director of its Fiscal Affairs Department, during a briefing on the Fiscal Monitor at the 2026 IMF–World Bank Annual Meetings in Bangkok, Thailand.
According to reports published on Wednesday, the IMF argued that blanket fuel subsidies are expensive, can disproportionately benefit wealthier consumers and place additional pressure on government finances, particularly when borrowing costs are high.
“Protecting people is not the same as protecting the price of fuels,” Valdés said, explaining the distinction between subsidising energy prices for everyone and directly supporting households that need assistance.
The IMF recommended using reliable household data and social safety-net programmes to identify vulnerable citizens and direct relief towards them.
Valdés also noted that fuel subsidies and similar measures that prevent energy prices from adjusting fully to market shocks had cost countries between one and 1.5 per cent of gross domestic product in 2026.
The debate comes as Nigerians continue to face pressure from rising transport fares and the cost of living following the removal of the petrol subsidy. Calls for its restoration have intensified amid concerns about the affordability of fuel.
The Federal Government has instead announced temporary relief measures, including a 30-day petrol discount at Nigerian National Petroleum Company Limited retail stations, with priority for public transport operators.
The IMF’s recommendation places renewed emphasis on balancing fiscal sustainability with immediate relief for households. However, the effectiveness of targeted assistance will depend on accurate beneficiary data, transparent implementation and whether support reaches Nigerians most affected by rising prices.
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