“No Subsidy Will Return”: Finance Minister Oyedele reaffirms govt position amid inflation concerns

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has ruled out the return of fuel subsidy in Nigeria, despite continued public pressure over rising living costs triggered by its removal.

Speaking on Tuesday in Paris during a high-level meeting between President Bola Tinubu and global investors, Oyedele maintained that the subsidy regime created deep economic distortions that the government is unwilling to reintroduce.

He stressed that petrol pricing would remain market-driven, arguing that government intervention through price control or subsidy would undermine long-term economic stability.

Oyedele said the Presidency believes the market is capable of self-regulation, adding that ongoing reforms are designed to correct structural imbalances rather than reverse them.

The Minister’s comments come against the backdrop of worsening inflationary pressures since the subsidy removal in May 2023, which saw headline inflation climb from 22.41% to 34.19% by June 2024, with food inflation crossing 39% by October 2024. The policy shift, alongside currency depreciation, also triggered a sharp rise in transport costs and deepened cost-of-living challenges across the country.

Oyedele, however, defended the reforms, noting that Nigeria recorded 11.2% GDP growth in dollar terms in 2025, which he said supports the administration’s ambition of building a $1 trillion economy by 2030.

He also assured investors that the government would begin publishing quarterly financial data as part of efforts to deepen transparency and fiscal discipline.

President Tinubu, in his remarks to investors from Citibank, Amundi, BlueCrest, Ninety One, PGIM, and others, said his administration’s reform agenda is focused on removing economic distortions, stabilising macroeconomic indicators, and driving inclusive growth.

He further highlighted improvements in foreign exchange stability following subsidy removal, describing the policy as necessary for long-term economic balance.

Tinubu also reiterated his government’s commitment to transparency in the oil sector, security reforms including police decentralisation, and efforts to disrupt terrorist financing.

The President assured investors that policy consistency and disciplined execution remain central to his post-2027 economic agenda, as Nigeria seeks to consolidate recent reforms into measurable gains for citizens.

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