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Nigeria’s Coordinating Minister of the Economy and Minister of Finance, Taiwo Oyedele, has revealed that the federal government will not reintroduce subsidies or impose price controls, reiterating its commitment to market-driven economic reforms.
Mr Oyedele who spoke during an event in Paris after an engagement with global investors on Tuesday,stressed that the government’s priority is to avoid policies that weakened the economy and to strengthen regulations that protect citizens.
“We will not bring back subsidies, and we will not introduce price controls because we believe in markets. “At the same time, we will ensure that regulation is responsible so that no supplier, trader, or manufacturer takes advantage of the Nigerian people,” he said
He emphasized that the administration is focused on building a system where market forces determine prices, but within a framework that promotes fairness.
FG Won’t Reintroduce Subsidy Or Price Control -Finance Minister
He further stated that global developments, including the ongoing war in Iran present both risks and opportunities for Nigeria, particularly in the energy sector
“We see all the issues happening in Iran.
While that is unfortunate, we also see opportunities as the world looks to diversify into new energies and invest in new markets,” he added
The Minister of Finance stated that Nigeria is positioning itself to benefit from shifting global dynamics by leveraging gains from current price regimes and channeling revenues into productivity.
“We will be able to mobilise revenue and spend that productively to increase supply, manage inflation, and ensure better outcomes for the economy,” Oyedele added.
FG Won’t Reintroduce Subsidy Or Price Control -Finance Minister
The minister expressed optimism that the country is on a path to progress dismissing claims of failure in policy implementation.
“Overall, we are excited. Better days are ahead for Nigeria,” he said.
The government’s stance comes amid
economic hardships due to rising cost of living that has plunged millions of Nigerians into poverty and hardship following the removal of fuel subsidy and unification of exchange rate.
.However, analysts said the impact of subsidy maintaining that long-term gains will outweigh short-term pressures.
Former CBN Governor Question Incessant Borrowing
The Emir of Kano and former CBN Governor Muhammadu Sanusi II, has raised fresh concerns over the Federal Government’s growing debt profile, questioning the rationale for continued borrowing despite the removal of petrol subsidy.FG Won’t Reintroduce Subsidy Or Price Control -Finance Minister
Speaking during an interview on News Central TV on Friday, the former Governor of the Central Bank of Nigeria said reforms such as subsidy removal and exchange rate liberalisation were necessary, but warned that poor sequencing and weak fiscal discipline could undermine their benefits.
Sunusi criticised Nigeria’s longstanding dependence on foreign refining, describing it as a flaw that persisted while local refining capacity remained underutilised.
“I have always said the subsidy regime was unsustainable. We cannot continue supporting foreign refineries. We’re an oil-producing country. Keeping refineries open abroad while we’re not doing our own,” Sunusi said
Former CBN Governor Question Incessant Borrowing
However, the emir welcomed recent progress in domestic refining, noting a shift from heavy importation of petroleum products to export activity.
“Today, we have a situation where we have our own domestic refinery. We’re not importing petroleum products. We’re even exporting to Europe, and this is very good for the economy,” he added
Despite supporting the reforms in principle, Sunusi questioned the timing and broader policy coordination, suggesting that critical measures may not have been implemented in the right order.
“Artificial exchange rates, especially when you’re printing money, cannot work. There was going to be a devaluation” he said
“For me, removing subsidy or liberalising exchange rates, these are good interventions. Were they done at the right time? Those are certain questions. Were there other things that should be done that have not been done? These are other issues” he added
Former CBN Governor Question Incessant Borrowing
The former apex bank chief argued that implementing exchange rate liberalisation in a loose monetary environment contributed to the naira’s sharp depreciation.
“It’s not enough to say, oh, they removed subsidy. You had to. When you get to a point where 100% of your revenu bye goes into debt service, you cannot continue. Where is the money going to come from”he said
“However, if you decide to remove subsidy and liberalise exchange rates in an environment of very loose monetary conditions, before you have tightened money supply, the Naira drops to a bottomless pit. That was a timing issue.”
Sanusi further challenged the government’s continued borrowing, insisting that savings from subsidy removal should translate into fiscal consolidation rather than increased debt.
Former CBN Governor Question Incessant Borrowing
“We’ve removed the subsidy. We’re now spending it. What we should not see is fiscal consolidation. You cannot remove wastages and continue borrowing. I’ve said this before. You need to see the benefits”he stated
“If you’re not paying the subsidy and you’ve got the money, why are we still borrowing and borrowing? What are we borrowing for?” Sunusi questioned
President Bola Tinubu has reiterated that economic reforms, including fuel subsidy removal, foreign exchange reforms and fiscal restructuring, have long-term benefits to all Nigerians.
Minister of Information and National Orientation, Mohammed Idris, while receiving an award on Friday in Lagos, emphasized that Nigerians will reap the benefits in the long run.
Former CBN Governor Question Incessant Borrowing
“As we navigate major policy shifts—including the removal of fuel subsidies, foreign exchange reforms, and fiscal restructuring—our approach has centered on clarity, consistency, and credibility. We are committed to ensuring that government decisions are communicated with empathy and responsibility, always highlighting their long-term benefits for all Nigerians,” said Mr Idris
His remarks come amid reports that the Federal Government has increased its 2026 borrowing plan by ₦11.31 trillion, pushing total projected borrowing to ₦29.20 trillion.
President Bola Tinubu also recently sought Senate approval for a fresh $516 million loan to finance the Sokoto–Badagry Superhighway project
