The Federal Government has ruled out any return to fuel subsidy, with Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, insisting that the policy remains permanently scrapped despite mounting concerns over rising living costs.
Gatekeepers News reports that Oyedele made the position clear on Tuesday in Paris, France, where he joined President Bola Tinubu in meetings with global investors, stressing that subsidies had long distorted Nigeria’s economy.
“We will not bring back fuel subsidy because it creates distortions for the economy, and we won’t introduce price control because we believe in the market… the situation in Iran presents new opportunities for us as the world looks to diversify sources of energy and invest in new markets,” he said.
The removal of petrol subsidy in May 2023 triggered a sharp rise in inflation, with headline inflation climbing from 22.41 percent at the time to 34.19 percent by June 2024 — the highest level in nearly two decades. The surge was driven largely by increased fuel, transportation, and food prices, worsening the cost-of-living crisis.
Food inflation alone crossed 39 percent by October 2024, while transport costs soared by almost 300 percent, compounded by currency devaluation and broader economic pressures.
Earlier, President Tinubu told the investors that eliminating the subsidy had helped stabilise Nigeria’s foreign exchange market.
“Subsidy that was a burden to the entire country, was removed and ever since we have achieved FX stability,” Tinubu said.
A statement from the Presidency reiterated that the administration’s reform agenda is focused on eliminating economic distortions, strengthening fiscal discipline, and stabilising key macroeconomic indicators to support long-term, inclusive growth.
Highlighting economic performance, Oyedele said Nigeria recorded 11.2 percent GDP growth in dollar terms in 2025, reinforcing the country’s ambition to grow into a $1 trillion economy by 2030.
He added that the government’s immediate priority is ensuring that ongoing reforms translate into tangible benefits for citizens, while also pledging to publish quarterly financial data to enhance transparency.
Also speaking, Director-General of the Debt Management Office, Patience Oniha, assured investors of Nigeria’s commitment to responsible borrowing and sustainable debt management.
The investor meeting featured representatives from major global institutions, including Citibank, Amundi, BlueCrest, Ninety One, Kirkoswald Capital, Principal Finisterre, Prudential Global Investment Management (PGIM), and Mesarete Capital.
President Tinubu, who is on a three-nation trip, reiterated his administration’s commitment to deepening reforms, improving transparency in the oil sector, and implementing a comprehensive security strategy, including police decentralisation and efforts to curb terrorist financing.
“The focus remains on policy stability and diligent execution to ensure these strategic shifts translate into concrete benefits for all Nigerians,” he said.
Some investors commended the government’s reform efforts and expressed optimism about Nigeria’s economic outlook. Responding to a question on his post-2027 agenda, Tinubu pledged continued emphasis on fiscal discipline, transparency, and policy consistency.
