Nigeria Rejects Fuel Subsidy Return Amid Inflation Concerns

On Tuesday, Finance Minister Taiwo Oyedele reaffirmed that the Nigerian government will not reintroduce fuel subsidies or price controls despite growing concerns over rising living costs. This statement was made during a meeting in Paris with President Bola Tinubu, who is currently on a three-nation trip.

Oyedele emphasized that the previous subsidy regime created economic distortions and that the government relies on market forces to determine fuel prices. Since the removal of fuel subsidies in May 2023, Nigeria has experienced a sharp rise in inflation, reaching nearly two decades' high at 22.41% in May 2023 and 34.19% in June 2024, driven largely by increased fuel, food, and transport costs.

The government aims to eliminate economic distortions and strengthen macroeconomic stability to support long-term inclusive growth. Oyedele also highlighted Nigeria's projected GDP growth of 11.2% in dollar terms by 2025, aligning with the goal of building a $1 trillion economy by 2030.