Govt resumes fuel subsidy payment, IMF lauds reforms

THE Federal Government has resumed the payment of verified subsidy claims to ensure the continuous supply of petroleum products to avert the scarcity of fuel.Finance Minister, Dr. Ngozi Okonjo-Iweala, said following the report of the Presidential Committee headed by Mr. Aigboje Aig-Imoukhuede, it was clear that some marketers also owe government significant sums of money and that it expects that these would be paid. Consequent on this, she said there was no reason for marketers or other stakeholders to go on strike because the government was addressing subsidy payment issues in a structured way that protects both the interest of the country and those of genuine marketers.Okonjo-Iweala has also directed the Debt Management Office (DMO) to pay marketers with verified claims as soon as supporting Sovereign Debt Notes are provided by the Petroleum Products Pricing and Regulatory Agency (PPPRA).The directive is to reinforce the government's determination to ensure that there was no disruption in fuel supply across the country, according to a statement by the Senior Special Assistant to the Minister on Media, Mr. Paul Nwabiukwu. Payments based on verified claims resumed after the June meeting of the Federation Accounts Allocations Committee (FAAC) when payments totalling N17 billion were made. Meanwhile, the International Monetary Fund (IMF) has scored Nigeria's economic and reform programmes high and asserted that the country was on the path of recovery.A report of its Article 1V Consultation with Nigeria to assess its economy between late last year and the first quarter of 2012, said the Federal Government's planned fiscal consolidation for 2012-2015 would be essential for rebuilding fiscal buffer for the uncertain global environment and safeguarding macroeconomic stability.It also praised the country's tackling of the banking sector crisis in 2009 and said a comprehensive reform to straighten supervision and regulatory framework had been initiated in the country, pointing out that this was capable of restoring financial system stability.The report also commended the country for promoting inclusive growth as it said: 'The authorities aim to boost prospect with inclusive growth by improving the business climate, infrastructure gaps and implementing reforms that promote sectors with high employment potential.'The IMF however advised Nigeria to stop unnecessary efforts at protecting the naira but to allow the forces of the market to determine its value.
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