The Federal Government has ruled out a return to fuel subsidy and multiple exchange rates, reaffirming its commitment to economic reforms while seeking to convert improved macroeconomic indicators into investments, economic growth and job creation.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stated this on Saturday in Bangkok, Thailand, following Nigeria’s participation in the International Monetary Fund (IMF) and World Bank Group Annual Meetings.
Oyedele clarified that the 30-day retail margin discount recently introduced on petrol was a temporary commercial decision by the Nigerian National Petroleum Company Limited (NNPC) to reduce margins and ease pressure on consumers, not a subsidy financed with public funds.
“Let me be clear: there will be no return to fuel subsidies or multiple exchange rates,” he said, noting that international investors, rating agencies and development partners had raised questions about the sustainability of the reforms.
The minister said Nigeria’s economy grew by 4.4 per cent in the second quarter of 2026, while inflation declined for four consecutive months to less than half its peak level recorded about two years earlier. Foreign reserves also rose above $35 billion.
He added that the country’s tax-to-GDP ratio increased from approximately seven per cent three years ago to 12.5 per cent at the end of 2025, while private capital inflows expanded from about $300 million in 2023 to nearly $6 billion in 2026.
Nigeria’s debt stood at approximately 36 per cent of gross domestic product, he said, adding that the government was shifting towards cheaper, longer-term financing.
To attract further investments, Oyedele announced 65 projects valued at $78.5 billion under the Project Nigeria initiative.
The projects cover energy, transport, manufacturing, mining, agriculture, healthcare and services, with feasibility studies and provisions for private-sector participation. Investors from Asia and Europe have expressed interest.
He said the World Bank had reaffirmed support for power and infrastructure, while the IMF pledged continued technical assistance on fiscal policy, transparency and national statistics. The European Union also identified energy and local pharmaceutical manufacturing as priority areas for cooperation.
However, Oyedele cautioned that the expressions of support were not immediate financial disbursements, stressing that the government would report progress only when commitments were signed and tangible results emerged.
At the meetings, Nigeria also advocated reforms to the global financial system through its chairmanship of the Group of 24 (G24), including fairer credit-rating methodologies, stronger local-currency markets and affordable climate financing.
Oyedele highlighted the employment challenge facing developing economies, citing projections that 1.2 billion young people would enter the global labour market over the next 15 years, while only about 400 million jobs might be created.
He warned that artificial intelligence could boost productivity without generating sufficient employment, urging investment in skills and labour-intensive sectors.
“Stability was the first test; growth that employs our people is the second,” he said, identifying improved living standards and decent jobs as the government’s next priorities. (NAN)
