The International Monetary Fund has urged the Federal Government to focus on reducing the high prices of food, drugs and transportation through the implementation of social protection measures.
The IMF’s Director of Communications, Julie Kozak, said this in the transcript of a press briefing posted on its website.
He emphasised the urgent need to alleviate the hardships faced by Nigerians occasioned by the fuel subsidy removal policy by the current administration.
According to Kozak, the full implementation of the social safety net programme is considered essential for the government’s future efforts to reform the costly subsidies on fuel and electricity.
She added that addressing food insecurity was an immediate priority.
Kozak said, “We do recognise the difficult situation that many Nigerians face. Our advice is first and foremost to help ease this suffering related to higher food, drug, and transportation prices by strengthening social protection.
“With food price inflation reaching 35 per cent year over year in January, addressing food insecurity is the immediate priority. The recently approved targeted social safety net programme will provide cash transfers to vulnerable households and this is also a very important step to easing the suffering.
“It will need to be fully implemented before the government can address costly implicit fuel and electricity subsidies in a manner that will ensure that low-income households are protected,” she stated.
The IMF also noted that the recent actions of the Monetary Policy Committee, which further tightened monetary policy, was a positive step towards curbing inflation and relieving pressure on the naira.
The IMF communications director said: “And the decision last week by the Monetary Policy Committee to further tighten monetary policy should also help contain inflation and contain pressures on the naira.”
Last month, the NLC and other labour unions had a nationwide protest over the high cost of living, inflation, insecurity, and hardship in the country.
Nigeria’s inflation rate climbed to 29.90 per cent in January 2024, from 28.92 per cent recorded in the previous month, highlighting heightened inflationary pressures.
