No return to fuel subsidy, multiple exchange rates, Oyedele insists

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on Saturday said there will be no reversal of the government’s policies on fuel subsidy removal and foreign exchange market liberalisation.

Mr Oyedele spoke in response to concerns raised in the wake of the debates over subsidy policies ahead of the 2027 elections.

PREMIUM TIMES reports that the minister spoke on the sidelines of the World Bank/IMF meetings in Bangkok, Thailand.

Nigeria has introduced a series of reforms the government said were focused on fixing the structure of the economy, although the impact has been enormous for many Nigerians grappling with the cost-of-living crisis.

The government introduced reforms in the foreign exchange market, abolished what it termed a wasteful, corruption-ridden subsidy regime amid fiscal pressures, and institutionalised tax reforms.

While the Nigerian government, led by President Bola Tinubu, has defended its economic policy of subsidy removal as critical to the nation’s fiscal survival, opposition politicians—such as Atiku Abubakar of the ADC and Peter Obi of the NDC—have canvassed for and promised a return to different subsidy arrangements if elected into power.

Although the reforms have been hailed as positive for the nation’s fiscal health by global development and financial institutions, many Nigerians have expressed frustrations over their impact on the domestic front amid skyrocketed energy prices, high cost of living and sundry inflationary pressures.

Mr Oyedele said on Saturday that there will be no return to subsidy regimes, adding that the 30-day retail margin discount isn’t a subsidy arrangement.

“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,” he said.

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PREMIUM TIMES reports that the government recently announced an intervention by the state-owned oil company, NNPC, that it would sell petrol at the cost price for about 30 days; a move many described as some form of subsidy. The government, however, insists the intervention is not a subsidy.

“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,” Mr Oyedele said.