The International Monetary Fund has advised Nigeria against restoring blanket petrol subsidies, urging the Federal Government to channel relief towards vulnerable citizens amid rising energy costs.

IMF Fiscal Affairs Department Director Rodrigo Valdés gave the advice on Wednesday during the IMF and World Bank Group annual meetings in Bangkok, Thailand, noting that broad-based subsidies were expensive and placed additional pressure on public finances.

Valdés acknowledged the political pressure associated with rising fuel prices but argued that targeted assistance would provide better relief for those most affected.

He suggested measures such as subsidising public transport fares rather than keeping petrol prices artificially low for all consumers, warning that blanket subsidies could prevent demand from adjusting to reduced global fuel supplies.