Nigeria will not return to fuel subsidies or multiple exchange rates, Finance Minister Taiwo Oyedele said at the closing of the International Monetary Fund and World Bank annual meetings in Bangkok on Saturday. Oyedele dismissed concerns about rising petrol prices and renewed debate about restoring subsidies ahead of the 2027 elections. He clarified that recent petrol discounts at Nigerian National Petroleum Company Limited outlets represent a time-limited commercial decision by the company to reduce profit margins, not government-funded subsidies. The minister previously warned that returning petrol prices to pre-reform levels could cost more than N20 trillion annually, diverting resources from public services.
The government argues that broad-based subsidies would strain public finances and undermine economic reforms. The International Monetary Fund has advised against blanket fuel subsidies, recommending targeted support for vulnerable households instead. Central Bank of Nigeria Governor Olayemi Cardoso stressed that sustaining investor confidence requires maintaining the reform course, warning against reversing difficult measures already implemented.
Beyond subsidies, Finance Minister Oyedele said the government targets 7 percent economic growth, arguing Nigeria can expand faster than International Monetary Fund projections suggest. He identified food, energy and logistics costs as key inflationary pressures and said the government aims to bring inflation to low single digits, which could create conditions for single-digit interest rates. Oyedele noted that the naira has strengthened, with the gap between official and parallel market exchange rates narrowing to about 3 or 4 percent from 60 percent previously, improving prospects for long-term domestic investment.