IMF Advises Nigeria to Target Bus Fare Support Instead of Fuel Subsidies

The International Monetary Fund (IMF) urged the Nigerian government to subsidize bus fares rather than fuel prices to better support vulnerable citizens amid rising fuel costs. This recommendation was made by Rodrigo Valdés, Director of the IMF’s Fiscal Affairs Department, during a Fiscal Monitor press briefing at the IMF and World Bank 2026 Annual Meetings in Bangkok, Thailand.

The Nigerian Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, had recently announced a N66 discount on fuel prices at all NNPC outlets for 30 days, aimed at easing the impact of elevated fuel prices on the cost of living. Valdés cautioned against blanket subsidies, emphasizing that targeted interventions would yield better results and warned of the high fiscal costs associated with failing to recognize the economic shock from rising fuel prices.

Davide Furceri, Division Chief of the IMF’s Fiscal Affairs Department, also highlighted the need for improved revenue mobilization and smarter spending in response to cost-of-living pressures.