FG rules out return to petrol subsidy, multiple exchange rates
Minister of Finance and Coordinating Minister of the Economy Federal Republic of Nigeria, Taiwo Oyedele
Abdullateef Fowewe
Nigeria’s federal government has ruled out restoring petrol subsidies or returning to a multiple exchange rate system, despite rising fuel prices and calls for policy reversal.
Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, made the position clear on Saturday at a briefing on the sidelines of the 2026 IMF and World Bank Annual Meetings in Bangkok, Thailand.
“Let me be clear, there will be no return to fuel subsidies or multiple exchange rates,” Oyedele said.
The minister said the recently announced 30-day petrol retail margin discount was a temporary commercial measure by the Nigerian National Petroleum Company (NNPC) Limited, not a government-funded subsidy.
“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,” he said.
Oyedele warned that reversing the Tinubu administration’s reforms could undermine economic stabilisation and weaken investor confidence.
He said the government was instead considering measures to ease the impact of higher energy costs without reinstating a blanket subsidy.
Oyedele said Nigeria is targeting 7% economic growth, arguing that IMF forecasts of 4.2% growth in 2026 and 4.3% in 2027 are too conservative.
“We have a target of 7 per cent growth,” he said.
He said achieving faster growth would require lower inflation, reduced financing costs, and action on pressures from food, energy and logistics.
The minister cited easing inflation and stronger external reserves as evidence of progress, but said the gains must translate into stronger economic activity and improved living standards.
The finance minister also warned that artificial intelligence could widen the gap between economic growth and employment unless Nigeria invests heavily in skills and job-creating sectors.
He cited estimates discussed at the meetings that about 1.2 billion young people would enter the global labour market over the next 10 to 15 years, while only about 400 million jobs are projected to be created.
Oyedele called for policies that ensure the benefits of AI are fairly shared, including enabling African countries to use their data and technological capabilities to build domestic expertise.
He also said multilateral institutions should be judged by the jobs their interventions create, not only by financing or growth outcomes.
