Govt is not bringing back the subsidy of fuel products, says Taiwo Oyedele, Minister of Finance

According to a report by Channel Television on Friday, October 9, 2026, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has reaffirmed the Federal Government’s position against restoring petrol subsidy, insisting that the administration of President Bola Tinubu will not return to the policy abolished in May 2023.

Oyedele said the government was committed to sustaining its economic reforms while introducing measures to ease the financial pressure caused by rising petrol prices on households, transport operators and businesses.

The minister’s position comes amid renewed calls for the restoration of fuel subsidy as Nigerians continue to grapple with high transportation costs, expensive goods and other economic challenges associated with the increase in petrol prices.

Speaking at a press briefing in Abuja on Thursday, October 8, 2026, Oyedele challenged those advocating a return to subsidy to explain how the policy would be financed, how long it could be sustained and the actual pump price it would deliver.

According to him, the government is willing to consider proposals supported by credible financial calculations but will not reverse what it considers a necessary economic reform without a sustainable alternative.

He warned that reinstating the subsidy could place additional pressure on government revenue, weaken the naira and undermine progress made in stabilising the economy.

The minister argued that subsidising petrol does not eliminate the actual cost of the product but transfers part of the financial burden to the government and, ultimately, public resources.

Oyedele cautioned that bringing back fuel subsidy could worsen Nigeria’s economic difficulties rather than provide lasting relief to consumers.

He estimated that restoring petrol subsidy could cost the country more than ₦20 trillion annually, depending on the structure of the policy and the level of support provided.

The minister also warned that the financial implications could trigger pressure on the exchange rate, potentially pushing the naira towards ₦3,000 to the dollar within months. He further projected that petrol could eventually sell for at least ₦2,000 per litre under such circumstances.

The projections were presented as the government’s assessment of the potential consequences of reversing the policy, rather than confirmed future outcomes.

Oyedele maintained that the government would prefer measures that provide relief to consumers without recreating the fiscal pressures associated with the former subsidy arrangement.

He also argued that a return to broad-based subsidy could expose the country to challenges previously associated with the policy, including fuel smuggling, revenue losses and pressure on foreign exchange.

As part of efforts to cushion the impact of rising fuel prices, the Federal Government has announced a 30-day petrol discount arrangement through the Nigerian National Petroleum Company Limited (NNPC).

Oyedele explained that the initiative should not be interpreted as a return to subsidy because the reduction is being funded through NNPC Retail’s profit margin rather than public funds.

Under the arrangement, NNPC Retail reduces or temporarily gives up part of the margin it adds to the cost of petrol, allowing consumers to purchase the product at a lower price.

The minister said the company continues to buy petrol from the Dangote Refinery and other suppliers at market prices, with the discount coming from its retail earnings.

He explained that this differs from the former subsidy system, under which the government paid part of the cost of petrol using public revenue.

The discount, which took effect on October 1, 2026, is intended to provide temporary relief to motorists, commuters and transport operators. Public transport operators are expected to receive priority under the arrangement.

Oyedele said the initiative demonstrates that the government can support consumers through targeted interventions without restoring a nationwide fuel subsidy.

Beyond the NNPC discount, the Federal Government has outlined other measures aimed at reducing the effects of rising energy costs on Nigerians.

These include a proposed ceiling of ₦1,350 per litre on petrol’s ex-gantry or landing cost, additional cash transfers to vulnerable households, subsidised credit and an expansion of compressed natural gas (CNG) deployment.

The government is also considering an excess-profit tax on energy operators, with proceeds intended to support measures that cushion the impact of higher energy prices on vulnerable consumers.

AZNews365 feedback-opera-news-app@opera.com