The federal government has ruled out any return to fuel subsidies or the introduction of price controls, reaffirming its commitment to market-driven economic policies.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, made this known on Tuesday in Paris, stating that subsidy regimes distort the economy and will not be reinstated.
He added that while the government supports market pricing, regulatory oversight would remain to prevent exploitation across the supply chain.
“We will not bring back subsidies because they create distortions in the economy, and we will not introduce price controls because we believe in markets while ensuring that regulation is responsible so that no supplier, trader, or manufacturer takes advantage of the Nigerian people,” he said.
Oyedele also noted that global developments, including tensions involving Iran, present both risks and opportunities for Nigeria, particularly in attracting energy investments and maximising revenue under the current price regime.
He said the government aims to mobilise more revenue and channel it into addressing supply-side challenges while managing inflation responsibly.
Nigeria has faced rising inflation since the removal of petrol subsidy in May 2023, with headline inflation climbing from 22.41 per cent in May 2023 to 34.19 per cent by June 2024, the highest ever, driven largely by increases in fuel, food and transportation costs, according to the National Bureau of Statistics (NBS).
Earlier, President Bola Ahmed Tinubu told investors that the removal of fuel subsidy had helped stabilise the country’s foreign exchange market.
“Subsidy that was a burden to the entire country was removed, and ever since we have achieved FX stability,” Tinubu said, according to a statement by his special assistant on social media, Dada Olusegun.
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