Nigeria’s Finance Minister, Taiwo Oyedele, has firmly stated that the government has no plans to bring back fuel subsidies. Speaking during a meeting between President Bola Tinubu and international investors in Paris, France, Oyedele emphasized that subsidies had previously caused significant economic distortions. He argued that leaving petrol prices to market forces is the best path forward, as the administration trusts free-market mechanisms over regulated pricing.
The removal of the subsidy in May 2023 led to a sharp rise in inflation, which hit a 19-year high. Headline inflation soared from 22.41% in May 2023 to 34.19% by June 2024, largely driven by higher fuel, food, and transportation costs. These increases worsened living conditions across the country. Food inflation alone climbed above 39% by October 2024, while transportation expenses jumped nearly 300%, deepening poverty levels.
During the Paris meeting, President Tinubu highlighted that removing the subsidy had helped stabilize foreign exchange markets. “The subsidy was a burden on the entire nation, and after its removal, we achieved FX stability,” he told investors. His adviser, Bayo Onanuga, added that the government’s reform agenda aims to eliminate economic distortions and strengthen macroeconomic stability for long-term inclusive growth.
Oyedele pointed to strong economic indicators, noting that Nigeria recorded 11.2% GDP growth in dollar terms in 2025, supporting the goal of building a $1 trillion economy by 2030. He also stressed that the government’s immediate priority is ensuring reforms translate into real benefits for citizens, with a commitment to publishing quarterly financial reports. The Director-General of the Debt Management Office, Patience Oniha, assured investors of prudent debt management and sustainable borrowing practices.
The investor group included representatives from Citibank, France’s Amundi, BlueCrest, Ninety One, Kirkoswald Capital, Principal Finisterre, PGIM, and Mesarete Capital. President Tinubu, who was on a three-nation trip, reiterated that his administration’s economic reforms are designed to stabilize key indicators and create a foundation for sustained growth. He also pledged to deepen reforms, improve transparency in the oil sector, and implement a comprehensive security strategy, including decentralizing the police and tackling terrorist financing. “Policy stability and diligent execution are crucial to ensuring these strategic shifts benefit all Nigerians,” Tinubu said.