Nigeria eyes IMF, World Bank support amidst fuel price surge

Nigeria's Finance Minister, Wale Edun, said on Monday that the West African nation will be seeking increased international financial support at this week's International Monetary Fund (IMF) and World Bank Spring Meetings, as rising fuel costs linked to the conflict in Iran threaten domestic reforms.

While higher crude oil prices have boosted foreign exchange earnings for Africa's largest oil producer, Edun warned that the surge comes at a "critical transition point," intensifying inflation and raising the cost of living for households.

Since the onset of the conflict, petrol prices in Nigeria have jumped more than 50% to 1,330 naira ($0.98) per liter, while diesel has surged over 70% to 1,550 naira per liter, placing strain on both consumers and businesses.

The spike threatens to derail reforms introduced in 2023 under President Bola Tinubu, which aimed to stabilize the economy and reignite growth. Tinubu's economic overhaul included ending costly fuel and energy subsidies, devaluing the currency, and restructuring the tax system.

At the IMF-World Bank meetings, Edun, who chairs the G24 group of developing nations, plans to advocate for lower borrowing costs, fairer global financial conditions, and greater support for countries undertaking reforms.

Nigeria's benchmark Bonny Light crude has surged from roughly $70–$73 per barrel before the conflict to over $120 per barrel, government figures show.

Although inflation fell sharply to 15.06% in February from around 33% in December 2024, it remains high by regional standards and has been pushed upward again following the conflict, according to the World Bank.

Edun emphasized that the government remains focused on attracting private investment, creating jobs, sustaining growth, and protecting vulnerable households from rising prices.