- The finance minister, Zainad Ahmed, says the IMF’s advice on the need to remove fuel subsidy is good
- The minister said the advice would, however, need to be implemented in a manner which is successful and sustainable
- Ahmed added that the govt has asked the World Bank to review some of its initiatives, including those concerning implementation systems on areas the bank is providing funding for infrastructure
The International Monetary Fund’s (IMF)’s advice to the federal government on the need to remove fuel subsidy has been described as “good advice” by the minister of finance, Mrs Zainab Ahmed.
She made the assertion in Washington DC, USA on the sidelines of the ongoing IMF/World Bank Spring Meetings, The Nation reports.
Legit.ng gathers that she said: “The advice from the IMF on fuel subsidy removal was a good one but also we have to implement it in a manner that is both successful and sustainable.
“We are not in a situation to wake up one day and just remove subsidy. We have to educate the people; we have to show Nigerians what the replacement for those subsidies will be.
“So, we have a lot of work to do. We also need to understand that you don’t remove large amounts of subsidy in one go, it has to be gradual and the public has to be well-informed on what you are trying to do.”
Ahmed also stated that the government asked the World Bank to review some of its initiatives, including those involving implementation systems on areas they are providing funding for infrastructure.
She said: “What we found in Nigeria is that the Environmental and Social Standards (ESS) put in place by the World Bank is causing significant delays in the rollout of infrastructure.
“We understand that it is well intended but we have informed them that they need to review how they implement it so that we are not overtly slowed down because of the new proceedings.”
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Recall that Legit.ng previously reported that the IMF expressed a renewed confidence in the Nigerian economy, as its executive directors welcomed Nigeria’s ongoing economic recovery, accompanied by reduced inflation and strengthened reserve buffers.
The global financial institution, however, called for the removal of fuel subsidy. The IMF also asked the Central Bank to stop its direct intervention in the economy and focus on price stability mandate.
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