The Federal Government has ruled out reversing the removal of petrol subsidy and the liberalisation of Nigeria’s foreign exchange market, insisting that the economic reforms introduced under President Bola Tinubu will remain in place.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, reaffirmed the administration’s position on Saturday while responding to questions about the country’s economic direction ahead of the 2027 general elections.
Oyedele spoke on the sidelines of the World Bank and International Monetary Fund meetings in Bangkok, Thailand, where he engaged with investors, credit rating agencies and international financial institutions.
The minister said the government had no plans to restore the former petrol subsidy regime or return to a system of multiple exchange rates.
He explained that these questions had repeatedly come up during engagements with investors and international financial institutions, prompting the government to clarify its position.
Oyedele stressed that the administration would not reverse its decision to end petrol subsidies, describing the policy direction as a continuing feature of its economic reform programme.
He said, “And let me be clear as well, this was a recurring question almost through all our engagements, but also with the rating agencies, with the investors, and the multilateral institutions. Every time they ask, are you reversing your plans? Are you bringing back subsidies? Let me be clear, there will be no return to fuel subsidies or multiple exchange rates.”
The minister’s remarks come as the cost-of-living crisis continues to weigh on households and businesses, with the removal of petrol subsidies contributing to higher transport and operating costs.
The Tinubu administration has consistently defended the policy, arguing that ending the subsidy regime was necessary to ease pressure on public finances and redirect government resources.
Oyedele Explains NNPC’s 30-Day Discount
The finance minister also addressed a recent 30-day retail margin discount announced by the Nigerian National Petroleum Company Limited (NNPC Ltd), clarifying that the measure should not be interpreted as a return to fuel subsidies.
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According to Oyedele, the discount was a temporary commercial decision intended to reduce retail margins and provide some relief to consumers.
He said, “The recent 30-day retail margin discount… is a time-bound commercial decision by the NNPC to reduce margins and support Nigerians. It is not a subsidy paid from public funds.”
The distinction, he maintained, was that the temporary price-support measure did not involve the government returning to the previous arrangement of paying subsidies from public funds.
Beyond petrol subsidy removal, the government also ruled out returning to multiple foreign exchange rates, reinforcing its commitment to the currency-market reforms introduced under Tinubu.