No Going Back on Fuel Subsidy and Exchange Rates, Oyedele Says

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said on Saturday that there will be no going back on the government's policies on fuel subsidy removal and changes in foreign exchange rates.

Mr Oyedele made this statement while addressing concerns about subsidy policies as the 2027 elections approach.

He spoke during the World Bank/IMF meetings in Bangkok, Thailand.

The Nigerian government has rolled out several reforms aimed at fixing the economy. But these changes have greatly affected many Nigerians, who are struggling with rising living costs.

The government has made changes in the foreign exchange market. It removed what it called a wasteful and corrupt subsidy system due to financial pressures. It has also implemented tax reforms.

President Bola Tinubu’s government supports its policy of removing subsidies as essential for Nigeria’s financial health. In contrast, opposition politicians like Atiku Abubakar of the ADC and Peter Obi of the NDC have promised to bring back some form of subsidy if they win.

While global financial and development organizations see these reforms as good for the country’s finances, many Nigerians are unhappy. They are facing high energy prices, rising living costs, and general inflation.

On Saturday, Mr Oyedele firmly stated that there will be no return to subsidized fuel. He explained that the recent 30-day retail margin discount is not a subsidy.

“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.

Recently, the government announced that the state-owned oil company, NNPC, would sell petrol at cost price for 30 days. Many see this as a type of subsidy, but the government insists it is not.

“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.