Posted by Chinenye on Wed 06th May, 2026 - tori.ng
Nigeria’s federal government has reaffirmed that the fuel subsidy will not be reinstated, despite continued pressure from citizens facing high living costs.
(Minister of the Economy, Taiwo Oyedele. Photo credit; Nation newspaper)
Despite widespread worries about the rising cost of living after the fuel subsidy was eliminated, Minister of Finance and Coordinating Minister of the Economy Taiwo Oyedele has reaffirmed that the Presidency will not reinstate it.
During a meeting between President Bola Tinubu and international investors on Tuesday in Paris, France, he revealed this.
Oyedele insisted that subsidies had previously led to "distortions" in the economy and said that since the government trusts market forces to set prices, petrol prices would not be regulated.
Nigeria's inflation sharply increased when the subsidy was eliminated in May 2023, hitting its highest point in 19 years.
Due in significant part to rising gasoline, food, and transportation expenses, headline inflation rose from 22.41% in May 2023 to 34.19% by June 2024, worsening living conditions across the country.
Following the June 2023 policy change, inflation kept rising gradually, and by October 2024, food inflation had surpassed 39%.
Poverty levels increased and transportation costs increased by almost 300% as a result of the policy change and currency devaluation.
The Minister stated, "We will not implement price control because we believe in the market and we will not bring back fuel subsidies because it creates distortions for the economy. The situation in Iran presents new opportunities for us as the world looks to diversify sources of energy and invest in new markets."
According to a statement from his Special Assistant on Social Media, Dada Olusegun, President Tinubu informed the investors earlier that Nigeria had improved foreign exchange stability since the "burden" of fuel subsidies was lifted.
"We have achieved FX stability since we removed the subsidy that was a burden to the entire country," Tinubu said the investors.
In a follow-up statement, Bayo Onanuga, his adviser on information and strategy, stated that the administration's reform plan is centered on enhancing macroeconomic stability and getting rid of economic distortions in order to promote long-term inclusive growth.
He reaffirmed the government's dedication to fiscal restraint and openness, saying that these drove the quick implementation of important measures.
Tinubu reiterated his administration's commitment to maintaining reform initiatives at the meeting.
Oyedele also highlighted Nigeria's impressive economic achievements, noting that the country's GDP grew by 11.2% in 2025 in terms of dollars, supporting its objective of creating a $1 trillion economy by 2030.
He promised to regularly publish quarterly financial reports and stated that the government's immediate goal is to make sure that reform programs result in real benefits for citizens.
Investors were reassured by Patience Oniha, Director-General of the Debt Management Office, about responsible debt management and a dedication to sustainable borrowing practices.
Citibank, Amundi (France), chaired by Valerie Baudson, BlueCrest, Ninety One (UK and South Africa), Kirkoswald Capital, Principal Finisterre, and US companies Prudential Global Investment Management (PGIM) and Mesarete Capital were among the investors.
President Tinubu reaffirmed that his administration's economic measures are intended to stabilize important metrics and lay the groundwork for long-term prosperity as he left Nigeria on Sunday for a tour to three other countries.
He continued by saying that efforts are being made to strengthen reforms, increase openness in the oil industry, and put in place a comprehensive security plan that includes combating terrorist financing and decentralizing the police.
President Tinubu stated, "To ensure these strategic shifts translate into concrete benefits for all Nigerians, the focus remains on policy stability and diligent execution."
At the conference, a few investors voiced optimism in Nigeria's economic prospects and commended the government's reform efforts.
When asked about his plans after 2027, Tinubu promised to uphold consistent policies, strengthen fiscal restraint, and increase openness.