Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has reaffirmed that the Federal Government will not reinstate fuel subsidy despite growing public concern over rising living costs.
Oyedele made the position known on Tuesday in Paris during a high-level engagement with global investors alongside President Bola Ahmed Tinubu.
According to the minister, the subsidy regime created structural inefficiencies in the economy, stressing that petrol pricing would remain market-driven rather than government-controlled.
“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”, Oyedele said.
Nigeria removed fuel subsidy in May 2023, a move that triggered a sharp rise in inflation and significantly increased the cost of living. Headline inflation climbed from 22.41 per cent in May 2023 to 34.19 per cent by June 2024, driven largely by surging fuel, food, and transportation costs.
Food inflation also rose steadily, exceeding 39 per cent by October 2024, while transport costs reportedly increased by nearly 300 per cent following the policy shift and currency depreciation.
Addressing investors at the meeting, President Tinubu said the removal of fuel 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”, the President said.
In a related statement, presidential adviser on information and strategy, Bayo Onanuga, noted that the administration’s reform agenda is focused on eliminating economic distortions, improving macroeconomic stability, and laying the groundwork for inclusive growth.
Oyedele highlighted positive economic indicators, stating that Nigeria recorded 11.2 per cent GDP growth in dollar terms in 2025, reinforcing the government’s ambition to grow the economy to $1 trillion by 2030.
He added that the government’s immediate priority is to ensure that ongoing reforms translate into tangible benefits for citizens, while also committing to greater transparency through the publication of quarterly financial reports.
Also speaking at the meeting, Director General of the Debt Management Office, Patience Oniha, assured investors of Nigeria’s commitment to responsible borrowing and sustainable debt management.
The investor delegation included representatives from major global institutions such as Citibank, Amundi, BlueCrest, Ninety One, Kirkoswald Capital, Principal Finisterre, Prudential Global Investment Management, and Mesarete Capital, led by Valerie Baudson.
President Tinubu, who is on a three-nation trip, reiterated that his administration remains committed to deepening reforms, strengthening transparency in the oil sector, and implementing a comprehensive security strategy, including police decentralisation and measures to disrupt terrorist financing.
“The focus remains on policy stability and diligent execution to ensure these strategic shifts translate into concrete benefits for all Nigerians”, the President said.
Some investors at the meeting commended the government’s reform efforts and expressed optimism about Nigeria’s economic outlook, while also seeking clarity on long-term policy direction beyond 2027.
In response, Tinubu assured them of continued fiscal discipline, transparency, and policy consistency as part of efforts to sustain investor confidence and economic growth.
