The Federal Government has ruled out any return to fuel subsidy, insisting that the policy created economic distortions and that petrol prices would continue to be determined by market forces.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stated this on Tuesday in Paris during an engagement between President Bola Tinubu and global investors.
Oyedele said the administration would not reintroduce the subsidy despite mounting public pressure over the rising cost of living since its removal in May 2023.
“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.
Since the removal of the subsidy, Nigeria has witnessed sharp increases in inflation, transportation costs, and food prices, worsening the cost-of-living crisis across the country.
Speaking at the meeting, President Tinubu told investors that the removal of what he described as the “burden” of fuel subsidy had helped stabilise the foreign exchange market.
“Subsidy that was a burden to the entire country was removed, and ever since we have achieved FX stability,” the President said.
According to a statement by the President’s Special Assistant on Social Media, Dada Olusegun, Tinubu reiterated his administration’s commitment to reforms aimed at eliminating economic distortions and stabilising key macroeconomic indicators.
The President’s Special Adviser on Information and Strategy, Bayo Onanuga, also said the administration remained focused on transparency, fiscal discipline, and policy consistency to drive inclusive economic growth.
At the meeting, Oyedele highlighted Nigeria’s economic performance, saying the country recorded 11.2 per cent GDP growth in dollar terms in 2025, a development he said supports the government’s ambition of building a $1tn economy by 2030.
He also pledged that the government would begin publishing quarterly financial data to strengthen transparency and investor confidence.
Also speaking, Director-General of the Debt Management Office, Patience Oniha, assured investors of the government’s commitment to responsible borrowing and sustainable debt management.
The investor meeting featured representatives of Citibank, Amundi, led by Valerie Baudson, as well as BlueCrest Capital Management, Ninety One, Kirkoswald Capital, Principal Finisterre, PGIM, and Mesarete Capital.
Tinubu assured the investors that his administration would deepen reforms, improve transparency in the oil sector, strengthen fiscal discipline, and maintain policy stability to ensure economic gains translate into tangible benefits for Nigerians.
