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We Stand By Our Advice To Nigerian Government On Subsidy Removal — IMF

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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”.

BIG STORY

BREAKING: President Tinubu Renames University Of Maiduguri After Buhari

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President Bola Tinubu has given approval to rename the University of Maiduguri in Borno State as Muhammadu Buhari University.

May we now adopt the University of the Maduguri as the Muhammadu Buhari University, Tinubu announced at the end of a special Federal Executive Council session held to honour Buhari at the Aso Rock Villa, Abuja, on Thursday.

Earlier, the President offered a heartfelt tribute to Buhari, portraying him as a good man, a decent man, an honourable man, whose legacy of discipline, patriotism, and strong moral values would be remembered for generations.

Tinubu acknowledged that although Buhari had imperfections, his steadfast dedication to serving the nation distinguished him.

President Buhari was not a perfect man, no leader is, but he was, in every sense of the word, a good man, a decent man, an honourable man.

His record will be debated, as all legacies are, but the character he brought to public life, the moral force he carried, the incorruptible standard he represented, will not be forgotten.

His was a life lived in full service to Nigeria, and in fidelity to God, he added.

Looking back at Buhari’s leadership and long career in both military and civil service, Tinubu highlighted his humility, modesty, and resistance to the temptations of power.

He stood, always, ramrod straight; unmoved by the temptation of power, unseduced by applause and unafraid of the loneliness that often visits those who do what is right, rather than what is popular.

His was a quiet courage, a righteousness that never announced itself. His patriotism was lived more in action than in words.

Tinubu also reflected on their political partnership, which led to the historic 2015 elections, marking Nigeria’s first peaceful transition of power between political parties.

We stood together, he and I. Alongside others drawn from across the political spectrum, regions and tongues, we formed an alliance that enabled Nigeria to experience its first true democratic transfer of power from one ruling party to another.

When he was sworn in as our party’s first elected President, he led with restraint, governed with dignity, and bore the burdens of leadership without complaint, he said.

The President admired Buhari’s life after leaving office, saying he chose to live quietly in Daura rather than influence politics from behind the scenes.

When his tenure ended, he returned to Daura; not to command from the shadows or to hold court, but to live as he always had, never seeking to impose his will but content to let others carry the nation forward.

Even in death, he maintained the serenity that defined him in life: not a sigh, not a groan, just a quiet submission to the will of God. Such was the man Nigeria has lost. Such was the man for whom our nation now mourns, he added.

Tinubu expressed gratitude to the Inter-Ministerial Committee and Katsina State Governor, Dikko Radda, for putting together a state funeral in less than 48 hours, calling it a profound honour to lead the burial ceremony in Daura.

He ended his tribute with a final message: Mai Gaskiya, the People’s General, the Farmer President, your duty is done. May Almighty Allah forgive his shortcomings and grant him Aljannah Firdaus. May his life continue to inspire generations of Nigerians to serve with courage, conviction, and selflessness. President Buhari, thank you. Nigeria will remember you.

Buhari passed away on Sunday, July 13, at the age of 82.

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BIG STORY

CPC Bloc And Buharists Reaffirm Commitment To APC And President Tinubu, Call For Party Chairmanship

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In a live interview earlier today on AIT, political analyst and committed Buharist Chief Okoi Obono-Obla —former member of the National Executive Committee and Secretary of the defunct CPC Merger Committee—addressed recent speculation regarding the Congress for Progressive Change (CPC) bloc and Buharists within the All Progressives Congress (APC), following the transition of former President Muhammadu Buhari.

Responding to reports that certain former government officials are considering a move to the African Democratic Congress (ADC) or aligning with a so-called coalition, Okoi stated firmly:

“These individuals do not represent the leadership or the collective will of the CPC bloc. As a Buharist and one who participated in the foundational merger, I can confirm that the CPC bloc remains solidly within the APC and stands fully behind President Bola Ahmed Tinubu.”

He emphasized that suggestions to defect run contrary to President Muhammadu Buhari’s legacy and enduring support for the APC:

“If those advocating a move to the ADC were genuine followers of President Buhari, they would respect his clear position. Our leader has declared he remains a member of the APC and deeply appreciates the platform the party provided for his presidency from 2015 to 2023.”

Okoi also conveyed a strong demand from the CPC bloc regarding the future leadership of the APC:

> “The CPC bloc is earnestly calling for the position of the next APC National Chairman to be conceded to our bloc. We are united in our clamour for Senator Tanko Umaru Al-Makura—our respected leader and a committed party stalwart—to assume this vital role.”

This reaffirmation not only signals loyalty to President Tinubu and the APC, but also outlines the CPC bloc’s expectations for inclusive party leadership, rooted in shared history and trust.

 

@ Okoi Obono-Obla#

PresidentialVillaUpdate

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BIG STORY

NELFUND To Launch Job Portal Linking Student Loan Beneficiaries To Employers By 2026

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The Nigerian Education Loan Fund (NELFUND) has revealed plans to introduce a centralized job portal by 2026 aimed at helping student loan recipients secure employment opportunities both locally and abroad.

This initiative forms part of broader strategies to strengthen the effectiveness of the student loan program and guide graduates toward financial stability.

While speaking at a media briefing in Abuja to commemorate one year since the loan scheme’s inception, NELFUND’s Managing Director, Akintunde Sawyerr, clarified that although the agency does not promise jobs, the planned job portal is intended to ease graduates’ entry into the workforce.

Sawyerr mentioned that the portal will compile job listings from government bodies, private companies, and foreign employers interested in hiring Nigerians.

We don’t just give a loan and leave students on their own. This job portal is our way of supporting their journey towards economic stability, he said

No repayment without employment

Sawyerr reaffirmed that repayment of student loans will only begin when beneficiaries secure employment and have completed their National Youth Service Corps (NYSC).

If you don’t have a job, you don’t pay. And when you eventually get a job, your repayment starts fresh.

Once employed, 10 per cent of the beneficiary’s monthly income is deducted automatically by the employer and remitted to NELFUND, following verification through the NELFUND employment register.

If an employee is laid off or resigns, the deductions stop. And in the event of death, the loan is written off. The family is not harassed, he said.

Institutions must refund duplicate payments

On the matter of students who made fee payments before NELFUND disbursed funds to their schools, Sawyerr urged institutions to fulfill their obligation and refund the affected students.

We’ve received multiple petitions from students who paid under duress, only to find their fees had also been paid by NELFUND.

Institutions must refund this money. It’s disappointing that some schools have ignored this responsibility, he said.

He further explained that anti-graft agencies have begun investigating: Investigative bodies like the ICPC and EFCC have stepped in to question certain institutions over delays or refusals to refund.

To ensure the right return of funds, he recommended: If an institution cannot refund directly to the student, they can pay the money back to us and we will ensure it gets to the rightful student.

Over 3.2 million student records in system

Mustapha Iyal, the Executive Director of Operations, shared that the Fund currently oversees over 3.2 million student records and anticipates receiving around one million additional applications by the end of 2025.

Basically, our projection right now, we have about 3.2 million students in our system.

What we’re looking at this year, from now to the end of the year, we’re looking at about one million applications. We’re not pushing. We’re not saying that it’s compulsory.

But we’re looking at how we can support one million applications to make sure that no one is dropping out of school, he stated.

What you should know

NELFUND has broadened its scope by launching a loan program that also funds vocational and technical education to empower Nigerian youth seeking practical trade skills. The pilot phase of this scheme will start in Enugu between late June and mid-July 2025.

According to Executive Director of Operations, Iyal Mustapha, the initiative will offer interest-free loans to cover tuition, transportation for attending full-time technical schools, stipends for living expenses, and even tools upon training completion.

Applications will be submitted via NELFUND’s portal, and once the system is active, applicants will be matched with certified vocational training centers in their region.

 

Credit: Nairametrics

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