The Federal Government has reaffirmed that fuel subsidies and multiple exchange rate regimes will not be reinstated, maintaining its commitment to economic reforms aimed at converting stabilisation gains into investment, economic growth and job creation.
Minister of Finance and Coordinating Minister of the Economy Taiwo Oyedele made the position clear on Saturday at a news briefing following Nigeria's participation in the IMF/World Bank Group Annual Meetings in Bangkok, Thailand. He explained that the 30-day retail margin discount on petrol introduced by the Nigerian National Petroleum Company Limited was a time-bound commercial decision to reduce margins and support Nigerians, not a subsidy funded with public resources.
"Let me be clear: there will be no return to fuel subsidies or multiple exchange rates," Oyedele said.
He cited several indicators to support the government's reform stance:
- Nigeria's economy grew by 4.4% in the second quarter of 2026, while inflation declined for four consecutive months to less than half its peak level recorded about two years earlier. - Foreign reserves rose above $35 billion. - The tax-to-GDP ratio increased from about 7% three years ago to 12.5% at the end of 2025, following GDP rebasing. - Private capital inflows rose approximately 20-fold, from about $300 million in 2023 to nearly $6 billion in 2026.
Oyedele placed Nigeria's debt at about 36% of GDP, describing the profile as manageable and noting that the government is shifting its borrowing towards cheaper, longer-term and more affordable financing.
On development partner engagement, he said the World Bank Group had reaffirmed support for Nigeria's power and infrastructure sectors through guarantee instruments and other financing mechanisms. The International Monetary Fund committed to continued technical support for fiscal policy implementation, transparency and national statistics, while the European Union identified energy and local pharmaceutical manufacturing as priority areas under its Global Gateway programme.
Oyedele cautioned against reading these engagements as immediate disbursements. "These are commitments to work together with us, not announcements of money," he said, adding: "We are playing down visibility and elevating credibility. We will not report progress as agreements until we have signed commitments and results begin to crystallise."
