We’ve Stabilised FX,” Oyedele Rules Out Fuel Subsidy Return

According to Ireporter Online, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has firmly ruled out any possibility of the return of fuel subsidy, stressing that the Federal Government has no intention of reintroducing a policy it believes previously distorted the economy.

Oyedele made this known on Tuesday in Paris, France, during a high-level meeting between President Bola Tinubu and global investors, where Nigeria’s ongoing economic reforms were a key focus of discussion. He also dismissed the idea of petrol price control, insisting that the administration remains committed to allowing market forces to determine pricing in the downstream sector.

He explained that the government’s reform stance is anchored on market-driven principles, noting that interventions such as subsidies and price fixing had historically created inefficiencies. He further stated that emerging global geopolitical developments, including tensions in energy-producing regions, could present new opportunities for Nigeria to attract investment into its energy sector.

President Tinubu, also addressing the investors, maintained that the removal of fuel subsidy had contributed to relative stability in the foreign exchange market. He described the subsidy regime as a heavy fiscal burden that had constrained national development, adding that its removal had helped improve macroeconomic conditions.

Tinubu reaffirmed that his administration remains focused on sustaining reforms, strengthening transparency in the oil and gas sector, and improving national security. He also emphasized that policy consistency and disciplined implementation would be critical to ensuring that ongoing economic adjustments translate into tangible benefits for citizens.

However, the subsidy removal, introduced in May 2023, has continued to generate economic pressure, with rising inflation, increased transport costs, and higher food prices affecting households across the country. Inflation levels have surged significantly since the policy change, contributing to a prolonged cost-of-living crisis.

Despite public concerns, Oyedele’s remarks in Paris indicate that the administration has no plans to reverse its current economic direction. He also disclosed that Nigeria recorded notable GDP growth in dollar terms in 2025, expressing optimism about the country’s ambition of becoming a $1 trillion economy by 2030.

He further pledged that the government would begin the regular publication of quarterly fiscal data to enhance transparency and boost investor confidence. Other officials, including the Director General of the Debt Management Office, Patience Oniha, assured investors of Nigeria’s commitment to sustainable debt management and responsible borrowing practices.

Global investors at the meeting reportedly welcomed the reform agenda, expressing cautious optimism about Nigeria’s economic outlook and its long-term growth potential.