Presidency Rules Out Return of Fuel Subsidy
The Federal Government has ruled out any return of fuel subsidy, despite growing public pressure over rising living costs. Taiwo Oyedele made the position clear during an investor meeting in Paris.
He stated that the Presidency will not restore subsidy payments. He also confirmed that fuel prices will remain market-driven under current policy direction.
Government Defends Market-Based Pricing
Oyedele said fuel subsidies created major economic distortions. He added that price controls will not return, as the government trusts market forces to determine value.
He spoke alongside President Bola Tinubu during discussions with global investors.
The minister also linked current global energy shifts, including tensions in Iran, to new investment opportunities in emerging markets like Nigeria.
Inflation Rises After Subsidy Removal
Nigeria removed fuel subsidy in May 2023. Since then, inflation has climbed sharply.
Headline inflation rose from 22.41% in May 2023 to 34.19% by June 2024. Food inflation also crossed 39% by October 2024. Transport costs increased by nearly 300% after subsidy removal and currency devaluation.
Tinubu Defends Economic Reforms
President Tinubu told investors that subsidy removal has improved foreign exchange stability. He said the policy reduced pressure on public finances.
He also said reforms aim to remove economic distortions and strengthen macroeconomic stability. His administration focuses on long-term growth and investor confidence.
Government Highlights Economic Gains
Taiwo Oyedele said Nigeria recorded 11.2% GDP growth in dollar terms in 2025. He said this supports the target of building a $1 trillion economy by 2030.
He added that the government will publish quarterly financial reports to improve transparency.
Debt Strategy and Investor Confidence
Patience Oniha assured investors of careful debt management. She said the government remains committed to sustainable borrowing practices.
Investors at the meeting included Citibank, Amundi, BlueCrest, Ninety One, Kirkoswald Capital, PGIM, and Mesarete Capital.
Investors Express Optimism
Several investors praised Nigeria’s reform agenda. They described recent policy changes as transformative and encouraged continued reforms.
One investor also asked about President Tinubu’s post-2027 plans. He responded that his administration will maintain fiscal discipline and policy stability.
Government Reaffirms Reform Direction
Tinubu reiterated his commitment to reforms across key sectors. He said his focus includes oil sector transparency and improved national security.
He also stressed that policies must translate into real benefits for Nigerians.
