The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has ruled out any return of fuel subsidies, despite growing public concerns over rising living costs.
He made the remarks on Tuesday in Paris, France, during a meeting between President Bola Tinubu and global investors.
Oyedele said fuel subsidies had created severe economic distortions and stressed that the government would not impose price controls on petrol, arguing that market forces should determine pricing.
Since the removal of the petrol subsidy in May 2023, Nigeria has experienced a sharp rise in inflation. Headline inflation climbed from 22.41% in May 2023 to 34.19% by June 2024, driven largely by higher fuel, food, and transportation costs. Food inflation also surpassed 39% by October 2024, deepening the cost-of-living crisis. The policy shift, combined with currency devaluation, pushed transport costs up by nearly 300% and intensified poverty levels.
“We will not bring back fuel subsidy because it creates distortions in the economy, and we won’t introduce price controls because we believe in the market,” Oyedele said. “The situation in Iran presents new opportunities as the world seeks to diversify energy sources and invest in new markets.”
Speaking earlier at the meeting, President Tinubu told investors that Nigeria had achieved foreign exchange stability following the removal of what he described as a “burden” on the economy. According to a statement by his Special Assistant on Social Media, Dada Olusegun, the President said: “Subsidy that was a burden to the entire country was removed, and ever since, we have achieved FX stability.”
In a related statement, his Adviser on Information and Strategy, Bayo Onanuga, said the administration’s reform programme is aimed at eliminating structural distortions, stabilising macroeconomic indicators, and laying the groundwork for inclusive growth. He also highlighted efforts to strengthen transparency, fiscal discipline, and the swift implementation of key reforms.
Oyedele further noted that Nigeria recorded 11.2% GDP growth in dollar terms in 2025, describing it as evidence of progress toward the country’s $1 trillion economy ambition by 2030. He added that the government’s immediate priority is to ensure reforms translate into tangible improvements in citizens’ welfare, and pledged the publication of quarterly financial data to enhance transparency.
The Director-General of the Debt Management Office, Patience Oniha, also reassured investors of the government’s commitment to prudent borrowing and sustainable debt management.
The meeting brought together investors from Citibank, France’s Amundi, led by Valerie Baudson, as well as BlueCrest, Ninety One (UK and South Africa), Kirkoswald Capital, Principal Finisterre, and US-based firms Prudential Global Investment Management (PGIM) and Mesarete Capital.
President Tinubu, who departed Nigeria on Sunday for a three-nation tour, reiterated that his administration’s reform agenda focuses on policy stability, transparency in the oil sector, and a multi-pronged security strategy, including police decentralisation and tackling terrorist financing.
“Our focus remains on policy stability and diligent execution to ensure these strategic shifts translate into concrete benefits for all Nigerians,” he said.
Some investors at the meeting praised the government’s reforms and expressed optimism about Nigeria’s economic outlook. One investor also asked the President about his plans beyond 2027, to which he responded by reiterating commitments to fiscal discipline, transparency, and policy consistency.
