Nigeria Rules Out Return of Petrol Subsidy as FG Unveils New Plan to Grow Economy

According to the report by Reuters, the federal government has ruled out a return to petrol subsidies, insisting that Nigeria’s next phase of economic growth will depend largely on private investment rather than increased government borrowing.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, made this position known on Wednesday while speaking at Chatham House in London. He said the government intended to attract more investment from both Nigerian and foreign investors to support economic expansion.

According to the minister, the government believes that relying more on private capital will help finance development without placing additional pressure on public borrowing. He also maintained that the removal of petrol subsidies would not be reversed.

The decision comes as Nigerians continue to grapple with the effects of higher living costs following major economic reforms introduced under President Bola Tinubu’s administration.

The removal of petrol subsidies and changes to the foreign exchange system have been central to the government’s economic programme. While officials argue that these measures have helped improve public finances and strengthen foreign reserves, many households and businesses continue to face pressure from the cost of transportation, food and other essential goods.

Oyedele acknowledged the importance of improving living standards, stressing that economic growth must translate into better conditions for ordinary Nigerians.

He said the government was pursuing measures aimed at supporting vulnerable households, including cash transfers. He also disclosed that the administration wanted inflation, which he said had declined from 21 per cent to 14.63 per cent over the preceding year, to fall further into single digits.

The minister expressed the government’s ambition to achieve average annual economic growth of about seven per cent over the next five years, a target that is more ambitious than current projections from international institutions.

However, achieving that goal will depend on whether increased investment translates into more jobs, stronger businesses and improved purchasing power for citizens.

For millions of Nigerians, the major question remains whether the government’s economic strategy will deliver meaningful relief from the rising cost of living.

The coming months will test the administration’s ability to attract investment while ensuring that the benefits of economic reforms reach ordinary households.

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