The International Monetary Fund, IMF, has warned Nigeria against restoring broad petrol subsidy.

According to TheCable, the IMF instead recommended targeted support for vulnerable households to cushion the impact of rising energy costs.

The international financial body said blanket petrol subsidies were expensive, often benefited higher-income consumers disproportionately and could worsen fiscal pressures amid rising borrowing costs.

The IMF said Nigeria’s economy had made substantial progress but warned that the benefits of growth remained unevenly distributed, leaving much of the population struggling.

It added that said policymakers must balance immediate needs of households with medium-term fiscal stability.

“What we are advocating is for policymakers to balance the near-term needs of the population, and that involves food security. That involves energy security,” the IMF said.