The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has reaffirmed that the Federal Government will not reinstate fuel subsidy, despite ongoing public concerns over rising living costs.
He made this known on Tuesday in Paris, France, during a meeting between President Bola Tinubu and global investors.
Oyedele explained that fuel subsidy had long created economic distortions and stressed that the administration remains committed to allowing market forces determine petrol pricing rather than reintroducing price controls.
He noted that the government’s position is based on the belief that removing subsidy is essential for long-term economic stability and reform.
President Tinubu, while addressing investors at the event, also defended the policy, saying Nigeria has recorded improved foreign exchange stability since the removal of fuel subsidy in 2023.
He said the subsidy had placed a heavy financial burden on the country and its removal has helped strengthen macroeconomic indicators.
According to him, the administration’s economic reform programme is focused on removing distortions, improving transparency, and creating conditions for sustainable growth.
However, Nigeria has experienced a sharp rise in inflation since the subsidy removal, with fuel, transport, and food prices increasing significantly and worsening the cost of living for many households.
Government officials at the meeting also assured investors of commitment to fiscal discipline, debt sustainability, and continued economic reforms aimed at attracting foreign investment and boosting growth.
The administration further pledged to publish regular financial data and maintain policy consistency to strengthen investor confidence.
