Nigeria Rules Out Price Control, Fuel Subsidy Return — Finance Minister Oyedele

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has reaffirmed that the Federal Government will not reintroduce fuel subsidy, despite growing concerns over the rising cost of living since its removal.

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He made the statement on Tuesday in Paris, France, during a meeting between President Bola Tinubu and global investors.

Oyedele insisted that the former subsidy regime created economic “distortions,” stressing that petrol prices would remain deregulated, with the government relying on market forces to determine pricing.

Since the subsidy was removed in May 2023, Nigeria has witnessed a sharp rise in inflation, hitting its highest level in nearly two decades.

Headline inflation climbed from 22.41 per cent in May 2023 to 34.19 per cent by June 2024, largely driven by increases in fuel, food, and transportation costs, which have worsened living conditions across the country.

The upward trend persisted after the June 2023 policy shift, with food inflation surpassing 39 per cent by October 2024.

Combined with currency devaluation, the removal of subsidy pushed transportation costs up by almost 300 per cent, further deepening poverty levels.

“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.

Earlier, President Tinubu told investors that Nigeria has recorded improved foreign exchange stability following the removal of the “burden” of fuel subsidy, according to a statement by his Special Assistant on Social Media, Dada Olusegun.

“Subsidy that was a burden to the entire country, was removed and ever since we have achieved FX stability”, Tinubu told the investors.

In a follow-up statement, the President’s Adviser on Information and Strategy, Bayo Onanuga, said the administration’s reform agenda is focused on eliminating economic distortions and strengthening macroeconomic stability to support long-term inclusive growth.

He noted the government’s commitment to transparency and fiscal discipline, which he said guided the swift implementation of key reforms.

At the meeting, Tinubu reiterated his administration’s resolve to sustain the reform drive.

Oyedele also highlighted positive economic indicators, stating that Nigeria recorded an 11.2 per cent GDP growth in dollar terms in 2025, in line with its ambition to build a $1 trillion economy by 2030.

He added that the government is focused on ensuring that reforms translate into tangible benefits for citizens, while also promising regular publication of quarterly financial reports.

The Director-General of the Debt Management Office, Patience Oniha, assured investors of prudent debt management and a commitment to sustainable borrowing.

The investor delegation included representatives from Citibank, France’s Amundi led by Valerie Baudson, BlueCrest, Ninety One (UK and South Africa), Kirkoswald Capital, Principal Finisterre, as well as US-based firms Prudential Global Investment Management (PGIM) and Mesarete Capital.

President Tinubu, who left Nigeria on Sunday for a three-nation trip, reiterated that his administration’s reforms are aimed at stabilising key economic indicators and laying the foundation for sustained growth.

He added that efforts are ongoing to deepen reforms, enhance transparency in the oil sector, and implement a comprehensive security strategy, including decentralising the police and tackling terrorist financing.

“The focus remains on policy stability and diligent execution to ensure these strategic shifts translate into concrete benefits for all Nigerians”, the President said.

Some investors at the meeting commended the government’s reform agenda and expressed optimism about Nigeria’s economic outlook.

Responding to a question about his plans beyond 2027, Tinubu pledged to strengthen fiscal discipline, improve transparency, and maintain policy consistency.