Nigeria may not benefit from increased oil prices, according to the International Monetary Fund (IMF) if the government does not limit the amount of fuel subsidies it provides to citizens, IgbereTV reports
Nigeria and other countries in Sub-Saharan Africa will spend $19 billion more on fuel imports as a result of higher oil prices, according to the IMF on Thursday.
The Washington-based lender revealed this in a report headlined ‘Africa Faces New Shock as War Raises Food and Fuel Costs,’
“Net exporters, like Nigeria, are likely to benefit from rising oil prices but a fiscal gain is only possible if the fuel subsidies they provide are contained.
“It is important that windfalls are largely directed to strengthen policy buffers, supported by strong fiscal institutions such as a credible medium-term fiscal framework and a strong public financial management system,” the report stated
