The International Monetary Fund (IMF) has given reasons why it advised Nigeria to end the fuel subsidy regime which it said was akin to robbing the poor for the rich.

The Director of the African Department of the IMF, Abebe Selassie, who disclosed this at the ongoing Spring Meetings of the IMF and World Bank in Washington DC, said removing fuel subsidies in Nigeria was for the benefit of the ordinary Nigerians and a way of revamping the country’s battered economy.

According to Selassie, the IMF had also provided the Nigerian government with a robust content on how the poor could benefit from the policy in the provision of social safety nets.

“Subsidies are about resource allocation internally within Nigeria. So Nigerians, the people of Nigeria pay for these subsidies,” the Fund chief said.

“And what’s the reason why we counsel against such generalised subsidies is very simple. It tends to be highly regressive, meaning the benefits of such you know, fuel subsidies tend to accrue to the rich and segments to reach out to people and the poor people.

“So it’s people that are driving these large cars, with big houses are wanting to see subsidised fuel. They’re the ones benefiting relative to the poor and vulnerable in Nigeria.

“So you know, not only people paying for the subsidies Nigeria, it’s the poorest segments of society that actually are losing out and resources could instead, of course, be used to improve conditions for poorer people instead of accruing to rich people.

“That’s why subsidy reform is important. We applaud the government for the steps government took to reduce the extent of subsidies. I think as oil prices have become volatile, the level of subsidy has also moved up and down.

“But I think you know, the direction of travel, I think, to remove the subsidies and use the resources to provide social protection for the most vulnerable households.”

Selassie however, cautioned African countries against commercial loans for the purposes of refinancing because of the current rate hike in most economies.

He advised that instead, countries South of the Sahara that have debt service challenges should look inward for domestic resource mobilization, which would be easier to deal with.

One of Zambia’s main opposition party, the Socialist Party (SP), has decried what it calls the rising tribalism, repression and corruption pervading the country, while calling for a serious national dialogue to address the issues.

National President of the SP, Dr Fred M’membe, who made the call in a statement in Lusaka on Thursday, said the situation in the country requires a “serious national dialogue”, while alleging that the country had been “set on a risky path of destruction” by the President Hakainde Hichilema and the ruling United Party for National Development (UPND.

While lamenting the precarious situation in the country, M’membe stated that Zambia had an “intensifying crisis of governance, rule of law, democracy and social cohesion”.

“There is a rise in tribalism and grand corruption which has left a dark spot on the unity, patriotism and democracy of our country. It is no longer a secret that Mr Hichilema has set this country on a risky path of destruction,” the SP leader alleged.

“The sharp rise in repression, ethnic bigotry, grand corruption, tribalism and many other vices has left a dark spot on the unity, patriotism and democracy of our country,” he said.

He also claimed that “political competitors, private citizens and other critical voices were degraded and brutalized through unseen repression and hardship without any tolerance and restraint.”

“There is an intensifying crisis of governance, rule of law, democracy and social cohesion in Zambia under President Hakainde Hichilema.

“The truth is, things are no longer the same anymore. This country is deeply divided. It is in unfathomable problems,” M’membe added.

“The manner in which government had been circumventing the law and abusing state institutions is a clear testimony of the illegitimate intentions of this administration.”

M’membe emphasized that the country was bedeviled with a lot of difficulties ranging from the economy, politics and social issues.

“The thoughtless manner in which this administration has been circumventing the law and abusing state institutions is a clear testimony of the illegitimate intentions of this administration.

“The government had incapacitated the rule of law and constitutional order in the country and is going about its daily business with impunity, without oversight or regard for cultural, political and economic consequences of their actions,” he further alleged.