Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, says the federal government will not restore petrol subsidy or
return to a multiple exchange rate system, despite rising fuel prices and calls
for policy changes.
Oyedele spoke on Saturday at a press briefing on the
sidelines of the 2026 International Monetary Fund (IMF) and World Bank annual
meetings in Bangkok, Thailand.
The minister said the government had no plans to reverse the
economic reforms introduced under President Bola Tinubu, adding that the
position had been made clear during engagements with investors, credit rating
agencies and multilateral institutions.
“Let me be clear, there will be no return to fuel subsidies
or multiple exchange rates,” the minister 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.”
Oyedele argued that reversing the reforms would undermine
the progress made in stabilising the economy and could weaken investor
confidence, adding that the government was exploring measures to ease the
effects of higher energy costs without reinstating a blanket subsidy.
FG TARGETS 7% GROWTH, SAYS IMF FORECASTS TOO CONSERVATIVE
Oyedele said Nigeria is targeting 7 percent economic growth,
arguing that projections by the IMF have been too conservative.
The IMF had projected Nigeria’s economic growth at 4.2
percent in 2026 and 4.3 percent in 2027.
However, the finance minister said Nigeria had the potential
to grow faster than current forecasts suggest, provided the government sustains
its economic reforms and tackles constraints affecting businesses and
households.
“We have a target of 7 percent growth,” he said.
Oyedele said bringing inflation down, reducing financing
costs and addressing pressures from food, energy and logistics would be
critical to achieving stronger growth.
He said Nigeria’s economic strategy was aimed at creating a
more stable environment for investment and expanding productive activity.
The minister also pointed to improvements in key economic
indicators, including easing inflation and stronger external reserves, as signs
of progress under the ongoing reforms.
However, he said the country needed to maintain the reform
momentum and translate macroeconomic improvements into stronger economic
activity and better living standards.
Oyedele further said Nigeria must prioritise investments
that create jobs as artificial intelligence (AI) threatens to widen the gap
between economic growth and employment.
The minister added that governments could not measure
economic progress by growth figures alone, stressing the need to ensure that
investment and technological advances translate into decent jobs.
Citing estimates discussed during the meetings, Oyedele said
about 1.2 billion young people would enter the global labour market over the
next 10 to 15 years, while only about 400 million jobs were projected to be
created.
The figures point to a significant employment challenge,
particularly for developing economies with large and growing young populations.
Oyedele warned that artificial intelligence could fuel
economic expansion without generating enough jobs to absorb new entrants into
the labour market.
He said Nigeria must respond by investing in skills
development at scale and attracting capital into sectors capable of creating
substantial employment.
The minister also called for policies that would ensure the
benefits of AI are shared fairly, including arrangements that allow African
countries to use their data and technological capabilities to develop domestic
expertise.
Oyedele also said the success of multilateral development
institutions should be judged not only by the financing they provide or the
growth they support, but also by the jobs their interventions create.
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