The managing director of the International Monetary Fund (IMF), Christine Largade, on Wednesday, January 6 2016 called for the removal of fuel subsidy in Nigeria.
She said this in a meeting with the 8th senate leadership in the National Assembly Abuja.
She (Largade) said in the meeting that most of the people who benefit from the subsidy are the rich.
Indeed, fuel subsidy is hard to defend. Not only do they harm the planet, but they rarely help the poor. IMF research shows that more than 40 per cent of fuel price subsidies in developing countries accrues to the richest 20 per cent of households, while only 7 per cent of the benefits go to the poorest percent.
According to Largade; continuing the move already begun by government in the 2016 budget to eliminate resources allocated to fuel subsidies would allow more targeted spending, including social programs for the most needy.
She also said that transfers and tax expenditures should be ready.
However, She suggested that it is time for the country to change her way of fuel subsidies administration.