Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has reiterated that the Presidency will not reintroduce fuel subsidy, despite widespread concerns over the rising cost of living following its removal.
He made this known on Tuesday in Paris, France, during a
meeting between President Bola Tinubu and global investors.
Oyedele maintained that subsidies previously caused economic
“distortions,” adding that petrol pricing would not be regulated, as the
government has confidence in market forces to determine prices.
After the subsidy was scrapped in May 2023, Nigeria
experienced a sharp spike in inflation, reaching its highest level in 19 years.
Headline inflation increased from 22.41% in May 2023 to
34.19% by June 2024, driven largely by rising fuel, food, and transportation
costs, which worsened living conditions nationwide.
Inflation continued to climb steadily after the June 2023
policy shift, with food inflation exceeding 39% by October 2024.
The policy change, alongside currency devaluation, pushed
transportation costs up by nearly 300% and deepened 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 the investors that Nigeria
has achieved 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, his Adviser on Information and
Strategy, Bayo Onanuga, noted that the administration’s reform agenda focuses
on eliminating economic distortions and strengthening macroeconomic stability
to support long-term inclusive growth.
He stated the government’s commitment to transparency and
fiscal discipline, explaining that these guided the swift rollout of key
reforms.
At the meeting, Tinubu reaffirmed his administration’s
dedication to sustaining reform efforts.
Oyedele also pointed to strong economic performance, stating
that Nigeria recorded 11.2% GDP growth in dollar terms in 2025, reinforcing its
goal of building a $1 trillion economy by 2030.
He added that the government’s immediate focus is to ensure
that reform policies translate into tangible benefits for citizens, while also
promising the 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 practices.
The investor group included representatives from Citibank,
France’s Amundi led by Valerie Baudson, BlueCrest, Ninety One from the UK and
South Africa, Kirkoswald Capital, Principal Finisterre, as well as US firms
Prudential Global Investment Management (PGIM) and Mesarete Capital.
President Tinubu, who departed Nigeria on Sunday for a
three-nation trip, reiterated that his administration’s economic reforms are
designed to stabilise key indicators and create a foundation for sustained
growth.
He added that efforts are ongoing to deepen reforms, improve
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”, President Tinubu said.
Some investors at the meeting praised the government’s
reform agenda and expressed confidence in Nigeria’s economic outlook.
In response to a question about his plans beyond 2027,
Tinubu pledged to reinforce fiscal discipline, improve transparency, and
maintain consistent policies.
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