IMF urges FG to cut back food costs

The IMF’s Director of Communications, Julie Kozak, mentioned this in the transcript of a press briefing posted on its website.

He emphasised the pressing need to alleviate the hardships confronted by Nigerians caused by the present administration’s gas subsidy elimination policy.

In line with Kozak, the complete implementation of the Social Security Internet programme is considered necessary for the federal government’s future efforts to reform the pricey gas and electrical energy subsidies.

She added that addressing meals insecurity was a direct precedence.

Kozak mentioned, “We recognise the challenging scenario many Nigerians face. Our recommendation is to strengthen social safety to assist in easing this struggle associated with more excellent meals, drugs, and transportation costs.

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 “With food value inflation reaching 35 percent 12 months over 12 months in January, addressing meal insecurity is the immediate priority. The recently accepted focused social security Internet program will offer money transfers to susceptible households, an important step to easing the struggle.

 She acknowledged that “it would have to be totally carried out before the federal government can deal with pricey implicit gas and electrical energy subsidies in a fashion that may ensure the protection of low-income households.”

The IMF also noted that the current actions of the Financial Coverage Committee, which further tightened financial coverage, were a positive step toward curbing inflation and relieving stress on the naira.

The IMF communications director mentioned: “And the choice last week by the Financial Coverage Committee to tighten financial coverage must also help contain inflation and pressures on the naira.”

Last month, the NLC and other labour unions staged a nationwide protest over the nation’s high cost of living, inflation, insecurity, and hardship.

Nigeria’s inflation rate climbed to 29.90 percent in January 2024, from 28.92 percent recorded in the earlier month, highlighting heightened inflationary pressures.