Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has declared that the federal government will not reinstate fuel subsidies or impose price controls despite worsening living conditions nationwide.
Speaking in Paris during a high-level meeting between President Bola Tinubu and international investors on Wednesday, Oyedele defended the policy, arguing that subsidies distort the economy and that fuel pricing must remain in the hands of market forces.
The stance is likely to spark fresh backlash at home, where millions of Nigerians continue to grapple with surging inflation and rising transport fares since the subsidy was scrapped in May 2023.
Official data paints a grim picture: headline inflation jumped from 22.41% in May 2023 to over 34% by mid-2024, while food inflation soared past 39% later that year.
Combined with naira devaluation, transport costs have nearly tripled, pushing more citizens into poverty.
Still, the government insists the pain is part of a broader reform strategy.
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Tinubu told investors that removing subsidy has improved foreign exchange stability and eliminated what he described as a long-standing economic burden.
According to his aides, the administration is doubling down on fiscal discipline, transparency, and structural reforms aimed at long-term growth, including ambitions to build a $1 trillion economy by 2030.
Oyedele also pointed to a reported 11.2% Gross Domestic Product (GDP) growth in dollar terms in 2025, promising that the benefits of reforms will eventually reach ordinary Nigerians.
