Lukman Otunuga,
FXTM Research Analyst.
The IMF has once again called on
Nigeria to phase out government fuel subsidies, citing better use of the funds
on social safety nets like healthcare, education and freeing up fiscal
resources for infrastructural projects. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html Historically, fuel subsidies are an extremely
sensitive issue which can have various impacts on economic growth and investor
confidence. Following the IMF’s recent report, the finance ministry was quick
to reject the idea of completely dropping the popular fuel rebate on the basis
that the state imports all fuel and includes the subsidy as a cost of doing
business.