April 17, 2026
SUNTV Global Channel Report
The has warned the Nigerian government not to return to fuel subsidies despite the growing economic hardship and rising cost of living across the country.
The warning comes as Nigerians continue to face increasing food and transportation costs, putting pressure on household incomes and worsening living conditions.
Speaking during the ongoing World Bank/IMF Spring Meetings in Washington, D.C., the IMF’s Director for Africa, , said the current global economic situation would likely make things more difficult for Nigerians in the coming months.
He explained that rising global tensions, especially uncertainties surrounding relations between the United States and Iran, have pushed crude oil prices higher. While this could increase Nigeria’s revenue, he warned that the immediate impact on citizens would be negative.
Nigeria’s crude oil grades, Brass River and Qua Iboe, are currently selling above $113 per barrel, far higher than the $60 benchmark in the 2026 national budget. Despite this increase, experts say the benefits may not be felt by ordinary Nigerians due to persistent inflation and structural economic challenges.
Selassie noted that rising transportation costs are already affecting both urban and rural populations, leading to higher food prices and worsening food security. He added that many Nigerians are already feeling the impact of the crisis, with daily life becoming increasingly difficult.
Despite the hardship, the IMF advised the government of to maintain its current economic reforms rather than reversing policies such as fuel subsidy removal.
President had removed fuel subsidies and introduced key economic reforms in 2023 to stabilise government finances and attract investment. However, these policies have also contributed to higher living costs, forcing many households to cut spending on basic needs.
The IMF stressed that reversing such reforms could worsen the situation, describing subsidy policies as costly, inefficient, and difficult to sustain. It urged the government to instead focus on strengthening revenue generation, improving spending efficiency, and protecting critical sectors of the economy.
The organisation also warned that Nigeria’s debt level is rising, projecting that the country’s debt-to-GDP ratio could reach 33.1 percent by 2027. According to recent data, Nigeria’s total public debt stood at over N159 trillion as of late 2025.
IMF officials further advised the government to prioritise essential spending, improve tax systems, and maintain transparency while engaging citizens on economic decisions.
They cautioned that abandoning reforms at this stage could create more economic instability, urging policymakers to stay consistent in navigating the current global and domestic challenges.
