THE Minister of Finance and Coordinating Minister of Economy, Taiwo Oyedele, has insisted that the Presidency will not bring back fuel subsidy, following widespread clamour over the effect of its removal on the cost of living.
News Point Nigeria reports that the Minister made the statement on Tuesday in Paris, France, as he and President Bola Tinubu met with global investors.
Oyedele noted that subsidies created economic “distortions”, adding that the prices of petrol would not be controlled because the Presidency believed the market was capable of regulating itself.
Following the removal of the petrol subsidy in May 2023, Nigeria’s inflation rate surged, reaching a 19-year high.
Headline inflation rose from 22.41% in May 2023 to 34.19% by June 2024, driven by sharply higher fuel, food, and transportation costs, deepening the cost-of-living crisis.
The inflation rate rose consecutively following the June 2023 announcement, with food inflation exceeding 39% by October 2024.
The removal, combined with currency devaluation, directly increased transport costs by nearly 300% and exacerbated 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.
While speaking earlier, President Tinubu told the investors that Nigeria has recorded stability in its foreign exchange 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.
A subsequent statement by his Adviser on Information and Strategy, Bayo Onanuga, emphasised that the economic reform programme of his administration included measures to remove economic distortions and stabilise macroeconomic indicators, laying the foundation for sustained inclusive growth.
He also emphasised transparency and fiscal discipline, and explained the rationale for the swift implementation of bold reforms.
At the event, Tinubu said his government is committed to reforms.
Oyedele highlighted Nigeria’s strong GDP growth in dollar terms in 2025.
He said Nigeria recorded 11.2% GDP growth in dollar terms last year, a record that reinforced the country’s ambition to achieve a $1 trillion economy in 2030.
Oyedele emphasised the government’s near-term priorities of translating reforms into results for the Nigerian people.
The Minister also pledged to publish quarterly financial data.
The Director General of the Debt Management Office, Patience Oniha, assured investors of the government’s responsible approach to debt financing and its focus on sustainable debt management.
The investors were from Citibank and France’s Amundi, led by Valerie Baudson. There were also BlueCrest, the Britain- and South Africa-based Ninety One, Kirkoswald Capital, Principal Finisterre, US groups Prudential Global Investment Management (PGIM) and Mesarete Capital.
President Tinubu, who left Nigeria on Sunday for a three-nation trip, said the economic reform program of his administration includes measures to remove economic distortions and stabilise macroeconomic indicators, laying the foundation for sustained inclusive growth.
He said his government is committed to deepening reforms, enhancing transparency across the oil value chain, and implementing a multi-pronged security strategy, including police decentralisation and disrupting 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 of the investors who spoke at the meeting commended the government’s transformative reforms and expressed optimism about the Nigerian economy.
One of the investors asked President Tinubu about his post-2027 agenda.
He promised to strengthen fiscal discipline and transparency, and to deliver policy consistency.