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. Speaking in Paris on Tuesday, May 5, 2026, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stated that subsidy regimes distort the economy and will not be reinstated. He clarified that while the government supports market pricing, regulatory oversight will remain active 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,” the Minister said.
Oyedele further noted that global developments, including tensions involving Iran, present both risks and opportunities for Nigeria, particularly in attracting energy investments and maximizing revenue under the current price regime. He emphasized that the government aims to mobilize more revenue and channel it into addressing supply-side challenges while managing inflation responsibly. This stance comes as the administration continues to navigate the economic shift initiated by the removal of the petrol subsidy in May 2023.
President Bola Ahmed Tinubu, addressing investors, maintained that the removal of the subsidy has already yielded positive results for the national economy. According to a statement by his special assistant on social media, Dada Olusegun, the President stated: “Subsidy that was a burden to the entire country was removed, and ever since we have achieved FX stability.” The administration believes that this stability is a critical foundation for attracting further foreign direct investment.
Despite these assurances, Nigeria has faced record-high inflation since the subsidy removal began. Data from the National Bureau of Statistics showed headline inflation climbing from 22.41 percent in May 2023 to an unprecedented 34.19 percent by June 2024, driven largely by the soaring costs of fuel, food, and transportation. The government maintains that the current market-driven approach is the only sustainable path forward, despite the immediate pressure on the cost of living for many citizens.
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