The Presidency has ruled out any return of fuel subsidy despite mounting public pressure over rising living costs, insisting that deregulation remains necessary for Nigeria’s economic stability.
Speaking in Paris during President Bola Ahmed Tinubu’s meeting with global investors, Finance Minister Taiwo Oyedele said subsidies created serious distortions in the economy and would not be restored.
Oyedele stressed that the government would also not impose fuel price controls, maintaining that market forces should determine petroleum prices.
He argued that the removal of subsidy had helped stabilise Nigeria’s foreign exchange market and improved investor confidence, while also opening opportunities for energy investments as global markets seek alternative supply sources.
According to presidential spokesman Bayo Onanuga, the administration’s reforms are aimed at eliminating economic distortions, enforcing fiscal discipline and laying the foundation for long-term inclusive growth.
Debt Management Office Director-General Patience Oniha also assured investors that the government remained committed to sustainable borrowing and responsible debt management.
Meanwhile, energy policy expert Samuel Caulcrick warned against any indirect reintroduction of fuel subsidy through discounted crude supply to local refineries.
He said such a move could revive large-scale fuel smuggling across Nigeria’s borders, as price differences between neighbouring countries would create incentives for illegal trade.
Caulcrick noted that while subsidy removal has worsened hardship for many Nigerians through higher transport and living costs, deregulation has also reduced profit margins for smugglers.
He cautioned that reversing the policy could undermine recent gains and once again channel government resources into unsustainable fuel support systems.