‘We Have Achieved FX Stability’ – Oyedele Speaks On Fuel Subsidy Return

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has ruled out the return of fuel subsidy, saying the Federal Government will not reintroduce a policy it believes created distortions in the economy.

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Oyedele stated this on Tuesday in Paris, France, during a meeting between President Bola Tinubu and global investors.

The minister said the government would also not impose price control on petrol, insisting that the administration believes the market should be allowed to regulate itself.

He said, “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.”

President Tinubu, who also addressed the investors, said the removal of petrol subsidy had helped Nigeria achieve stability in the foreign exchange market.

According to a statement by his Special Assistant on Social Media, Dada Olusegun, the President told the investors that the subsidy regime had become a burden on the country.

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

The President added that his administration remained committed to deepening reforms, improving transparency across the oil value chain and strengthening security.

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

Naija News reports that Tinubu’s removal of petrol subsidy in May 2023 triggered sharp increases in the cost of fuel, transportation and food across the country.

Following the policy, Nigeria’s headline inflation rose from 22.41 per cent in May 2023 to 34.19 per cent by June 2024, marking one of the highest levels in nearly two decades.

Food inflation also climbed above 39 per cent by October 2024, while transport costs rose sharply, worsening the cost-of-living crisis for many households.

The subsidy removal, combined with the devaluation of the naira, has continued to put pressure on Nigerians, with many citizens and groups calling on the government to review its economic policies.

However, Oyedele’s comment in Paris suggests that the Tinubu administration has no plan to reverse the subsidy removal despite the hardship being faced by citizens.

Presidency Promises Fiscal Discipline

In a separate statement, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, said the administration’s reform programme was designed to remove economic distortions and stabilise macroeconomic indicators.

Onanuga said the reforms were aimed at laying the foundation for sustained and inclusive growth.

He said the President also emphasised transparency, fiscal discipline and the need for swift implementation of bold economic reforms.

At the meeting, Tinubu assured the investors that his government would continue to pursue policies that support long-term economic growth.

The President also said his administration was implementing a multi-pronged security strategy, including police decentralisation and efforts to disrupt terrorist financing.

Oyedele, while speaking at the event, said Nigeria recorded 11.2 per cent Gross Domestic Product growth in dollar terms in 2025.

He said the growth strengthened Nigeria’s ambition to become a $1tn economy by 2030.

The minister added that the government’s immediate priority was to ensure that the reforms begin to produce visible benefits for Nigerians.

He also pledged that the Federal Government would begin publishing quarterly financial data as part of efforts to improve transparency and investor confidence.

The Director General of the Debt Management Office, Patience Oniha, also assured investors that the Federal Government was taking a responsible approach to debt financing.

Oniha said the administration remained focused on sustainable debt management and would continue to ensure that borrowing decisions align with the country’s long-term fiscal goals.

The investors at the meeting included representatives of Citibank and France’s Amundi, led by Valerie Baudson.

Others were BlueCrest, Ninety One, Kirkoswald Capital, Principal Finisterre, Prudential Global Investment Management, and Mesarete Capital.

Some of the investors reportedly commended the government’s reforms and expressed optimism about the Nigerian economy.

One of the investors also asked Tinubu about his post-2027 agenda, to which the President promised to strengthen fiscal discipline, transparency and policy consistency.