Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has reiterated that the Presidency will not reintroduce fuel subsidy, despite widespread concerns over the rising cost of living following its removal.
He made this known on Tuesday in Paris, France, during a meeting between President Bola Tinubu and global investors.
Oyedele maintained that subsidies previously caused economic “distortions,” adding that petrol pricing would not be regulated, as the government has confidence in market forces to determine prices.
After the subsidy was scrapped in May 2023, Nigeria experienced a sharp spike in inflation, reaching its highest level in 19 years.
Headline inflation increased from 22.41% in May 2023 to 34.19% by June 2024, driven largely by rising fuel, food, and transportation costs, which worsened living conditions nationwide.
Inflation continued to climb steadily after the June 2023 policy shift, with food inflation exceeding 39% by October 2024.
The policy change, alongside currency devaluation, pushed transportation costs up by nearly 300% and deepened poverty levels.
“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”, the Minister said.
Earlier, President Tinubu told the investors that Nigeria has achieved improved foreign exchange stability following the removal of the “burden” of fuel subsidy, according to a statement by his Special Assistant on Social Media, Dada Olusegun.
“Subsidy that was a burden to the entire country, was removed and ever since we have achieved FX stability”, Tinubu told the investors.
In a follow-up statement, his Adviser on Information and Strategy, Bayo Onanuga, noted that the administration’s reform agenda focuses on eliminating economic distortions and strengthening macroeconomic stability to support long-term inclusive growth.
He stated the government’s commitment to transparency and fiscal discipline, explaining that these guided the swift rollout of key reforms.
At the meeting, Tinubu reaffirmed his administration’s dedication to sustaining reform efforts.
Oyedele also pointed to strong economic performance, stating that Nigeria recorded 11.2% GDP growth in dollar terms in 2025, reinforcing its goal of building a $1 trillion economy by 2030.
He added that the government’s immediate focus is to ensure that reform policies translate into tangible benefits for citizens, while also promising the regular publication of quarterly financial reports.
The Director-General of the Debt Management Office, Patience Oniha, assured investors of prudent debt management and a commitment to sustainable borrowing practices.
The investor group included representatives from Citibank, France’s Amundi led by Valerie Baudson, BlueCrest, Ninety One from the UK and South Africa, Kirkoswald Capital, Principal Finisterre, as well as US firms Prudential Global Investment Management (PGIM) and Mesarete Capital.
President Tinubu, who departed Nigeria on Sunday for a three-nation trip, reiterated that his administration’s economic reforms are designed to stabilise key indicators and create a foundation for sustained growth.
He added that efforts are ongoing to deepen reforms, improve transparency in the oil sector, and implement a comprehensive security strategy, including decentralising the police and tackling terrorist financing.
“The focus remains on policy stability and diligent execution to ensure these strategic shifts translate into concrete benefits for all Nigerians”, President Tinubu said.
Some investors at the meeting praised the government’s reform agenda and expressed confidence in Nigeria’s economic outlook.
In response to a question about his plans beyond 2027, Tinubu pledged to reinforce fiscal discipline, improve transparency, and maintain consistent policies.
