The Federal Government of Nigeria (FG) is seeking technical support from the International Monetary Fund (IMF) to design a transparent fuel price modulation framework aimed at cushioning domestic price shocks and strengthening fiscal stability.

Key Points:

• Collaboration: Involves the Ministry of Petroleum Resources, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and IMF Fiscal Affairs Department (FAD) Technical Assistance Mission on Climate Policy.
• Objective: Build a resilient fiscal system capable of withstanding global energy market volatility while maintaining economic discipline.
• Subsidy Removal: Dr. Emeka Vitalis Obi, Permanent Secretary, noted that removing the general fuel subsidy is necessary to restore fiscal stability and redirect public spending to infrastructure, social welfare, and sustainable energy.
• Environmental Initiatives:
  • Nigeria Gas Flare Commercialisation Programme (NGFCP)
  • Carbon-credit frameworks to end routine gas flaring, reduce methane emissions, and promote gas utilization in power generation, fertilizer production, and CNG markets.
  • Alignment with Nationally Determined Contributions (NDCs) under the Paris Agreement.
• IMF Role: Support in fiscal analytics, climate policy modelling, and carbon pricing readiness.

IMF Perspective:

• Mr. Diego Mesa, IMF Technical Team Leader, highlighted the focus on fiscal reforms, sustainable development, and climate policy, including fossil fuel and carbon taxation.

Regulatory Commitment:

• NUPRC and NMDPRA officials reaffirmed their dedication to eliminating gas flaring, refining tariff frameworks, and balancing investor returns with consumer protection.