- Nigeria partners with the IMF to design a transparent fuel price framework for domestic stability.
- The move supports fiscal balance, promotes clean energy growth, and fosters sustainable reforms following subsidy removal.
The Federal Government has joined forces with the International Monetary Fund (IMF) to create a transparent fuel price framework. This initiative aims to stabilise local fuel prices and strengthen Nigeria’s fiscal resilience.
Dr Emeka Vitalis Obi, Permanent Secretary of the Ministry of Petroleum Resources, announced this in Abuja. He spoke during a meeting involving the Ministry, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The IMF Fiscal Affairs Department (FAD) also attended.
He stated that the collaboration aims to establish a fair and transparent fiscal system. It should help Nigeria withstand global energy market shocks while maintaining disciplined public finances. He added that a transparent fuel price framework will reduce domestic price volatility and encourage investor confidence.
Dr Obi described the IMF mission as timely and necessary. It supports Nigeria’s recovery from the pandemic and helps manage climate-related financial pressures. The effort also strengthens ongoing reforms in the energy sector.
He stressed that removing fuel subsidies was essential to restoring fiscal health. According to him, this step allows government spending to focus on infrastructure, welfare, and sustainable energy development.
Dr Obi further noted Nigeria’s commitment to environmental goals. He mentioned the Nigeria Gas Flare Commercialisation Programme (NGFCP) and carbon-credit projects aimed at reducing methane emissions. These programmes promote gas use in power, fertiliser, and Compressed Natural Gas (CNG) production.
“These actions,” he said, “show Nigeria’s commitment to its Paris Agreement targets and global ESG standards.”
He called for ongoing IMF support to enhance fiscal analysis, climate policy modelling, and carbon pricing systems.
IMF Technical Team Leader, Mr Diego Mesa, praised the Ministry for its clear presentation of Nigeria’s fiscal direction. He said the mission focused on reforms, sustainable growth, and fair climate taxation.