The Federal Government has firmly ruled out any return to fuel subsidy, despite mounting public pressure over the worsening cost of living across the country.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stated this on Tuesday in Paris, France, during an engagement with global investors alongside President Bola Ahmed Tinubu.
Oyedele maintained that the reintroduction of subsidy would undermine ongoing economic reforms, arguing that such policies historically created “distortions” within the economy.
“We will not bring back fuel subsidy because it creates distortions for the economy, and we won’t introduce price controls because we believe in the market,” he said.
The Paris meeting forms part of the government’s broader effort to attract foreign investment and reposition Nigeria as a competitive global economy.
Oyedele highlighted what he described as strong economic performance, noting that Nigeria recorded 11.2 per cent GDP growth in dollar terms in 2025 — a figure he said supports the country’s ambition of becoming a $1 trillion economy by 2030.
He added that the government’s immediate priority is to ensure that the benefits of reforms translate into tangible improvements in citizens’ lives.
As part of transparency measures, the minister pledged that the government would begin publishing quarterly financial reports to keep investors and citizens informed.
Also speaking, the Director-General of the Debt Management Office, Patience Oniha, assured investors that Nigeria remains committed to responsible borrowing and sustainable debt management practices.
Inflation surge after subsidy removal
Nigeria has grappled with a sharp rise in inflation since the removal of petrol subsidy in May 2023, a policy announced shortly after Tinubu assumed office. During Tinubu’s inauguration, the president announced, “subsidy is gone”.
Data from the National Bureau of Statistics show that headline inflation climbed from 22.41 per cent in May 2023 to 34.19 per cent by June 2024 — the highest level recorded in nearly two decades.
The surge has been driven largely by increases in fuel prices, transportation costs, and food prices. Food inflation alone exceeded 39 per cent by October 2024, intensifying hardship for millions of Nigerians.
Analysts say the combined effect of subsidy removal and the naira’s devaluation significantly raised the cost of goods and services. Transport fares, for instance, have risen by nearly 300 per cent in some parts of the country, worsening poverty levels and reducing household purchasing power.
Tinubu defends reform agenda
Speaking at the same event, President Tinubu defended the administration’s economic reforms, describing the removal of subsidy as a necessary step to stabilise the economy.
According to him, eliminating what he called the “burden” of fuel subsidy has helped improve Nigeria’s foreign exchange stability.
“Subsidy that was a burden to the entire country was removed, and ever since we have achieved FX stability,” the President said.
In a separate statement, his Special Adviser on Information and Strategy, Bayo Onanuga, reiterated that the administration’s reform programme is designed to eliminate inefficiencies, enhance transparency, and restore fiscal discipline.
