The International Monetary Fund (IMF) has issued a critical advisory to President Bola Ahmed Tinubu, urging the Nigerian government to bolster social protection mechanisms in response to the recent surge in fuel prices and severe flooding.
This call to action was articulated by Christian Ebeke, the IMF's Resident Representative in Nigeria, during an interview on Arise Television.
The context of this advisory is rooted in the massive hike in Premium Motor Spirit (Petrol) pump prices, which have escalated to between N897 and N980 per litre at Nigerian National Petroleum Company Limited retail outlets and independent marketers' filling stations.
This increase from previous prices of N617 and N720 per litre has compounded the economic strain on Nigerians, who are already grappling with a high inflation rate of 33.40 percent as of July 2024.
Ebeke emphasized the compounded impact of these economic shocks, stating, "It is important to strengthen social protection in Nigeria. It is important to accelerate the mechanism and the disbursement of this support to the most vulnerable, so they can cope with the multiple shocks they are facing now."
He highlighted that the Federal Government's current program, which aims to reach 15 million households, should be expedited to mitigate the adverse effects of the fuel price hike and other economic pressures.
The urgency of this situation is further underlined by the recent flooding in Maiduguri, Borno State, which has resulted in the displacement of numerous individuals and the loss of at least 30 lives.
The IMF's position is clear: while economic adjustments are necessary, it is crucial to consider their potential impact on the most vulnerable segments of the population.
Ebeke reiterated, "So our position again is while you are making these adjustments, it is very important to be mindful of the potential impact these have on the most vulnerable."
コメント