FG Speaks On Returning Fuel Subsidy Amid Hardship In Nigeria

FG has spoken on the possibilities of returning fuel subsidy amid hardship in Nigeria.

NewsOnline Nigeria reports that the Federal Government has ruled out the possibility of restoring fuel subsidies and multiple exchange rates, insisting that President Bola Tinubu’s economic reforms will not be reversed despite growing concerns over the cost of living in Nigeria.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stated this on Saturday while responding to questions about the government’s economic policies ahead of the 2027 general elections.

Oyedele spoke on the sidelines of the World Bank and International Monetary Fund (IMF) meetings in Bangkok, Thailand.

According to the minister, the government remains committed to maintaining the removal of fuel subsidies and the liberalisation of the foreign exchange market.

He disclosed that the possibility of reversing the reforms had repeatedly come up during engagements with rating agencies, investors and multilateral institutions.

Oyedele, however, maintained that the government had no plans to return to the previous subsidy regime or multiple exchange rates.

“And let me be clear as well, this was a recurring question almost through all our engagements, but also with the rating agencies, with the investors, and the multilateral institutions.

“Every time they ask, are you reversing your plans? Are you bringing back subsidies? Let me be clear, there will be no return to fuel subsidies or multiple exchange rates,” the minister said.

The statement comes amid continued concerns over rising living costs and the impact of economic reforms on Nigerians, with fuel prices remaining a major issue for households and businesses.

The removal of petrol subsidies and the liberalisation of the foreign exchange market were among the major economic policy changes introduced under the Tinubu administration.

While the Federal Government has defended the measures as necessary reforms, opposition figures have criticised their implementation and called for alternative policies to ease the economic burden on citizens.

Former Vice-President Atiku Abubakar of the African Democratic Congress (ADC) and Peter Obi of the Nigeria Democratic Congress (NDC) have both faulted the government’s economic policies and advocated measures to address the cost-of-living crisis.

The debate over fuel subsidy removal is expected to remain a major issue in political discussions ahead of the 2027 general elections, as Nigerians continue to assess the effects of government policies on fuel prices, transportation costs and household purchasing power.

Source link