The International Monetary Fund (IMF) says its advice on foreign exchange (FX) rate and subsidy removal was necessary for Nigeria’s macroeconomic stability.

The Washington-based institution reiterated its stance on its policy recommendations to Nigeria in an email to Premium Times on Wednesday.

Abebe Selassie, director of the African department at the IMF, had applauded the economic reforms implemented by President Bola Tinubu’s administration during a press briefing at the just concluded IMF/World Bank meetings in Washington DC., United States.

Selassie said the IMF has consistently advocated for Nigeria’s investment in infrastructure, health, and education; describing the removal of the subsidy as a step which represents a more effective use of public resources.

He said the move would unlock the economy’s vast potential to become more dynamic, attract investments, and drive growth.

Selassie had also said the Nigerian government should direct the savings from petrol subsidy removal to support vulnerable households amid the country’s economic hardship.

However, on October 25, local media reported that the IMF had denied being involved in the removal of the petrol subsidy.

The Nigeria Labour Congress (NLC), on October 28, criticised the international “lender for its denial” of responsibility regarding the Nigerian government’s recent removal of the subsidy.

Speaking on the matter on Wednesday, the IMF said it assessed Nigeria’s petrol subsidy and foreign exchange rate policies prior to the recent reforms but did not consider it “cost-effective”.

“Regarding the petrol subsidy, based on our research and international experience, we do not see this as the most cost-effective way of providing relief to Nigerian citizens,” the lender said.

“This is mainly because the petrol subsidy benefits not just low-income households that need government support, but also high-income and wealthy Nigerians who do not need this financial support from the government.

“Moreover, there is evidence that a share of the subsidised petrol was smuggled to neighbouring countries, where petrol prices were much higher. This means that the petrol subsidy benefitted not only Nigerians but also the citizens of neighbouring countries.

“Thus, removing the petrol subsidy should free resources that the government can allocate to other priority spending items, including social protection, health and education spending, and infrastructure investments.”

The IMF said the fixed exchange rate policy in operations before the recent reforms, was equally not sustainable.

“We have also assessed the viability of the fixed exchange rate regime that Nigeria pursued until mid-2023,” IMF added.

“At the time, not all dollar demand from Nigerians was being met at the official exchange rate. Instead, many Nigerians had to turn to the parallel market and pay a premium of around 60 percent to acquire dollars.

“This means that until mid-2023 some Nigerians were able to purchase dollars at the official rate of around N460 to the US dollar. But many others, at the same time, could only purchase dollars at the parallel market rate of around N750 to the US dollar.

“While some people were able to transact at a subsidized rate, many others had to pay a much higher price. This also put pressures on the CBN’s reserves and was not sustainable.

“By allowing the naira to be determined by market conditions, everyone now has access to US dollars at the same price.”

• ‘We Stand By Our Advice’

On whether the criticisms could lead to the lender’s withdrawal from the country, IMF said its advice was to all its member countries, as summarised in its annual report on each country.

“We stand by our advice, though it’s important to underscore that individual pieces of that advice cannot be viewed in isolation,” the multilateral added.

“Our advice is a comprehensive policy package where all elements are linked to each other. That package seeks to ensure macroeconomic stability and raise living standards in a sustainable fashion.

“Importantly, our advice on petrol subsidies and the exchange rate, is set in a larger, comprehensive policy mix that also includes scaling up social transfers to provide relief to Nigerians who are already suffering from a cost-of-living crisis or who are impacted by policy reforms.”

The IMF also said governments “listen to advice from many corners and then decide on the best course forward”.

A Kuje Magistrate Court has set November 8 for the trial of Alexander Ikwechegh, a House of Representatives member representing Abia State, after granting him N500,000 bail.

Ikwechegh, who was arraigned on Wednesday, before His Worship, Abubakar Umar Sai’id, for allegedly assaulting a Bolt driver, Stephen Abuwatseya, at his residence in Abuja, pleaded not guilty to the charges brought against him.

The Inspector General of Police, Kayode Egbetokun, arraigned Ikwechegh on three counts bordering on abuse of office, assault and threat to life.

After taking his plea, the lawmaker’s counsel proceeded to make an oral application for bail, which was granted by the court.

The magistrate said, “The court will grant the defendant a bail set at N500,000, with two sureties in like sum. The sureties must reside within the court’s jurisdiction and provide utility bills as proof of residence.”

The court proceeded to adjourn the hearing in the matter till November 8.

A video of Ikwechegh allegedly assaulting the Bolt driver had gone viral on social media on Monday.

In the video, Ikwechegh can be seen repeatedly slapping the driver.

Aside from the slaps, the lawmaker can be heard threatening the driver and assuring him of how he can make him disappear without a trace.

Meanwhile, a civil society organisation, Rule of Law and Accountability Advocacy Centre, in a statement, on Wednesday, condemned Ikwechegh’s action and described it as “a glaring example of abuse of power” most common with politicians.

The statement signed by RULAAC’s Executive Director, Okechukwu Nwanguma, said the lawmaker’s action was a shame not only on him but also on every member of the House of Representatives.

He stated, “The recent incident involving a federal lawmaker, Alex Ikwecheghi’s brutal treatment of Uber driver, Mr Stephen Abuwatseya, is a glaring example of the abuse of power that permeates Nigeria’s political landscape.

Ikwechegh’s actions, including verbal and physical assault, as well as intimidation of the victim, reveal a profound lack of humility and respect for the rights of others that should be expected from someone in a public office.

“This incident not only shames Ikwechegh but also reflects poorly on the House of Representatives, the police, and the broader political system.

The indiscriminate use of power to silence and control vulnerable citizens showcases a troubling trend among officials who seem to operate above the law.

The complacency of the police in this matter raises serious concerns about their integrity and commitment to justice, as they appear more willing to serve influential individuals than to uphold the rule of law.

“While the House of Representatives’ decision to investigate this behaviour is a positive step, it remains to be seen whether meaningful accountability will follow.

Historical precedents suggest a risk of sweeping the issue under the rug once public outrage subsides, which would do little to repair public trust in governance.”

Nwanguma noted that the societal implications of the incident were dire as it “transcends the individual and speaks to a culture of impunity that must be addressed,” imploring that justice must not only be served for Abuwatseya but also the many unnamed victims of similar abuses.

“This case must serve as a catalyst for change, leading to reforms that prioritise respect for human rights and the rule of law in Nigeria”, he stated.

Veteran Nollywood actor, Abdulsalam Sanyaolu, popularly known as Charles Olumo and “Agbako”, is dead.

His colleague, Jide Kosoko, announced “Agbako’s” demise in a post on his Instagram page on Thursday.

However, Kosoko failed to reveal the circumstances surrounding “Agbako’s” death.

The movie star wrote, “Good night ooo, Baba Charles. a.k.a “Agbako”, 102 years, “ba wasa ba”. R I P”

“Agbako” was born on February 19, 1923, in Abeokuta, Ogun State.

The thespian initially worked as a mechanic and amateur boxer before embarking on his acting career in 1953 at the Apostolic Church in Mushin, Lagos State.

Over the decades, “Agbako” has become a household name, especially in the Yoruba film industry, known for his roles in numerous films like ‘Taxi Driver’, ‘Jagun’, ‘Amin Orun’, ‘Aiye’, ‘Jayesinmi’, ‘Soworo Ide’, and ‘Igbo Dudu’.

His career, spanning over four decades, showcases his versatility and enduring passion for acting.