Collaboration aims to cushion domestic price shocks, strengthen fiscal stability, and advance Nigeria’s climate and energy reforms….
The Federal Government has requested the technical support of the International Monetary Fund (IMF) to develop a transparent fuel price modulation framework aimed at cushioning domestic price shocks and reinforcing Nigeria’s fiscal stability.
The request was made by Emeka Vitalis Obi, Permanent Secretary of the Ministry of Petroleum Resources, during a joint engagement in Abuja between the Ministry, its regulatory agencies, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the IMF’s Fiscal Affairs Department (FAD) Technical Assistance Mission on Climate Policy.
Obi described the collaboration as part of efforts to build a resilient and transparent fiscal system capable of withstanding global energy market volatility while maintaining economic discipline.
“The Federal Government is seeking the continued technical support of the IMF’s Fiscal Affairs Department in designing a transparent and resilient price modulation mechanism that will help cushion domestic price shocks, insulate markets from extreme global volatility, and preserve fiscal discipline,” he said.
He emphasized that the removal of the general fuel subsidy was a necessary step to restore fiscal stability and redirect public spending toward infrastructure, social welfare, and sustainable energy development.
Highlighting Nigeria’s environmental priorities, Obi cited the Nigeria Gas Flare Commercialisation Programme (NGFCP) and emerging carbon-credit frameworks as initiatives to end routine gas flaring, reduce methane emissions, and promote gas utilisation in power generation, fertilizer production, and Compressed Natural Gas (CNG) markets.
“These initiatives align with Nigeria’s Nationally Determined Contributions (NDCs) under the Paris Agreement and global ESG standards,” he said.
Obi also called for sustained IMF partnership both technical and financial to strengthen fiscal analytics, climate policy modelling, and carbon pricing readiness.
The IMF Technical Team, led by Diego Mesa, commended the Ministry for providing a detailed overview of Nigeria’s energy and fiscal landscape, noting that the mission focused on fiscal reforms, sustainable development, and climate policy, with emphasis on fossil fuel and carbon taxation.
Officials from NUPRC and NMDPRA reaffirmed their commitment to eliminating gas flaring, refining tariff frameworks, and ensuring a balance between investor returns and consumer protection.
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