The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has ruled out any reversal of the government’s fuel subsidy removal and foreign exchange liberalisation. He spoke on Saturday on the sidelines of the World Bank and IMF meetings in Bangkok, Thailand. “Let me be clear, there will be no return to fuel subsidies or multiple exchange rates,” he said.
President Bola Tinubu removed the petrol subsidy in May 2023. He floated the naira the same year. The reforms were painful. Inflation peaked at 33.2% in 2024. The naira weakened. The World Bank estimates 63% of Nigerians live in poverty. The government says the measures were necessary to avoid fiscal collapse. Opposition candidates Atiku Abubakar and Peter Obi have promised to restore some form of subsidy if elected in 2027.
Oyedele addressed concerns about the recent 30-day petrol discount announced by NNPC. Many described it as a subsidy. He disagreed. “The recent 30-day retail margin discount is a time-bound commercial decision by NNPC to reduce margins and support Nigerians. It is not a subsidy paid from public funds,” he said. He said the government would not reverse course. He said the reforms were already yielding results. He cited improving reserves, a stable exchange rate and falling inflation.
The minister’s statement is a direct response to the opposition. Atiku and Obi have made subsidy restoration a campaign promise. Oyedele is saying the government will not follow that path. The 2027 election will test whether voters prefer relief or reform.
Winners: The Federal Government, which shows consistency. Investors, who gain certainty. The Central Bank of Nigeria, which gains support. Multilateral institutions, which back the reforms. Losers: Nigerians facing high fuel costs. The opposition, whose subsidy promise is challenged. Transport operators, whose margins remain thin. The poor, who see no immediate relief.
Bottom Line: The government will not restore the subsidy. The NNPC discount is temporary. The opposition wants a different path. Voters will choose. Oyedele has drawn the line.