Nigeria’s Minister of Finance, Taiwo Oyedele, has ruled out the possibility of restoring petrol subsidies, insisting that the government will focus on attracting private investment to drive economic growth and improve living conditions across the country.
The minister made the position clear during an interview with Reuters on Wednesday, October 21, explaining that Nigeria’s next phase of economic development would depend increasingly on domestic and foreign private capital rather than additional government borrowing.
Oyedele said the economic reforms introduced by President Bola Tinubu since 2023 had helped improve the country’s public finances and strengthen its foreign exchange reserves.
The reforms include the removal of petrol subsidies and changes to Nigeria’s foreign exchange system, which the government believes are necessary to create a more stable economic environment.
However, the decision not to restore the subsidy comes as Nigerians continue to face significant financial pressure from high transportation costs, food prices and other essential expenses.
Government focuses on investment and economic growth
According to Oyedele, the government is now working to move beyond stabilising the economy and focus on generating stronger economic growth.
He explained that attracting private investment would be central to creating jobs, expanding businesses and improving productivity.
The government is seeking to encourage both Nigerian investors and international companies to participate in the country’s economic development.
Rather than relying heavily on government borrowing to finance growth, the administration wants private businesses to play a larger role in developing industries and creating employment opportunities.
Nigeria has been working to improve its investment environment following years of economic challenges, including pressure on public finances and difficulties accessing foreign exchange.
The finance minister said the government was targeting average annual economic growth of approximately 7 per cent over the next five years.
This target is higher than the growth projections provided by the International Monetary Fund, which forecasts Nigeria’s economy to expand by 4.2 per cent in 2026 and 4.3 per cent in 2027.
Inflation declines, but households remain under pressure
Oyedele also pointed to a decline in inflation as evidence that the government’s economic policies were beginning to produce results.
According to the minister, inflation had fallen to 14.63 per cent from approximately 21 per cent a year earlier.
The government expects inflation to decline further in the coming months.
Despite the improvement, many Nigerians continue to experience the effects of rising living costs.
The removal of petrol subsidies significantly changed the cost of transportation and affected the prices of goods and services across the country.
Businesses that depend on transportation, electricity generation and distribution have also faced increased operating expenses.
For households, the challenge has been managing daily expenses while dealing with changes in income and purchasing power.
The government has maintained that the reforms are necessary to address longstanding economic problems, but Nigerians continue to demand policies that will translate economic improvements into better living conditions.
Government expands support for vulnerable households
The finance minister said approximately 10 million households currently receive cash transfers under government support programmes.
The initiative is intended to provide assistance to vulnerable Nigerians affected by economic difficulties.
The government has also identified targeted support as part of its strategy to protect households while pursuing broader economic reforms.
However, the effectiveness of these programmes will depend on how consistently assistance reaches eligible beneficiaries and whether the support is sufficient to address their needs.
States expected to play a bigger role
Oyedele also highlighted the government’s plans to devolve more responsibilities to state governments.
The administration believes greater participation by states could improve economic development and allow local governments to respond more effectively to the needs of their communities.
The government is also seeking to increase revenue without placing additional financial burdens on citizens.
This approach is expected to involve improvements in revenue collection, investment opportunities and economic activities across different sectors.
What this means for Nigerians
The government’s decision to maintain the removal of petrol subsidies means Nigerians should not expect an immediate return to the previous fuel subsidy arrangement.
Instead, the administration is focusing on economic growth, private investment, job creation and targeted assistance for households.
The success of this strategy will depend on whether investment translates into employment opportunities, improved incomes and more affordable living conditions.
For businesses, increased private investment could create opportunities for expansion and improve access to capital.
For ordinary Nigerians, the major expectation remains that economic reforms will eventually result in lower inflation, stronger purchasing power and improved standards of living.
The government has stated that its priority is to turn economic stability into meaningful growth, although the impact of its policies will continue to be closely watched by citizens and investors.
