Tinubu will not return fuel subsidy- Oyedele
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has insisted that the Federal Government will not reintroduce fuel subsidy despite growing public concern over the rising cost of living following its removal.
Oyedele made the declaration on Tuesday in Paris during a meeting between President Bola Tinubu and global investors.
According to the minister, fuel subsidy created economic distortions and hindered market efficiency, stressing that the government would also not impose price controls on petroleum products.
“We will not bring back fuel subsidy because it creates distortions for the economy, and we will not introduce price control because we believe in the market,” Oyedele said.
He added that emerging global developments, including tensions involving Iran, present opportunities for Nigeria as countries seek alternative energy markets and investment destinations.
The removal of petrol subsidy in May 2023 triggered sharp increases in fuel prices, transportation costs and food prices across the country, worsening economic hardship for millions of Nigerians.
Nigeria’s headline inflation climbed from 22.41 per cent in May 2023 to 34.19 per cent by June 2024, marking the highest inflation level recorded in nearly two decades. Food inflation also rose above 39 per cent by October 2024, while transport costs reportedly increased by almost 300 per cent following the policy and the devaluation of the naira.
Speaking at the investors’ meeting, President Tinubu defended the decision to remove the subsidy, describing it as a necessary step towards economic 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 statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the Presidency said the administration’s reforms were aimed at eliminating economic distortions, improving transparency and stabilising macroeconomic indicators to achieve inclusive growth.
Tinubu also assured investors that his administration would continue implementing reforms across the oil sector while strengthening fiscal discipline and policy consistency.
Oyedele further disclosed that Nigeria recorded an 11.2 per cent GDP growth in dollar terms in 2025, describing it as a significant milestone towards the government’s target of building a one trillion dollar economy by 2030.
He said the government’s immediate focus was to ensure that the reforms translate into measurable benefits for ordinary Nigerians, while also pledging that quarterly financial data would be made public to improve transparency.
The Director General of the Debt Management Office, Patience Oniha, also assured investors of the government’s commitment to responsible borrowing and sustainable debt management.
The investors at the meeting included representatives of Citibank, Amundi, BlueCrest, Ninety One, Prudential Global Investment Management and Mesarete Capital.
Some of the investors reportedly commended the government’s reform agenda and expressed optimism about the future of the Nigerian economy.