Tinubu Govt Rules Out Petrol Subsidy, Multiple Exchange Rates Return

The Bola Ahmed Tinubu-led federal government has ruled out reversing the removal of petrol subsidy and the liberalisation of the foreign exchange market.

The government insisted that the economic reforms introduced under President Bola Ahmed Tinubu’s administration will remain in place.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stated this on Saturday morning while addressing concerns about the government’s economic direction ahead of the 2027 general elections.

According to Premium Times, Oyedele spoke on the sidelines of the World Bank and International Monetary Fund meetings in Bangkok, Thailand, where he responded to questions from investors, credit rating agencies and international financial institutions.

The minister maintained that the government had no intention of restoring the previous petrol subsidy regime or returning to a system of multiple foreign exchange rates.

“And let me be clear as well, this was a recurring question almost through all our engagements, but also with the rating agencies, with the investors, and the multilateral institutions. Every time they ask, are you reversing your plans? Are you bringing back subsidies? Let me be clear, there will be no return to fuel subsidies or multiple exchange rates,” he said.

“The recent 30-day retail margin discount… is a time-bound commercial decision by the NNPC to reduce margins and support Nigerians. It is not a subsidy paid from public funds,” Oyedele added.

Recall that the Tinubu administration introduced a series of reforms the government said were focused on fixing the structure of the economy, although the impact has been enormous for many Nigerians grappling with the cost-of-living crisis.

The government introduced reforms in the foreign exchange market, abolished what it termed a wasteful, corruption-ridden subsidy regime amid fiscal pressures, and institutionalised tax reforms.

The Nigerian government, led by President Bola Tinubu, has defended its economic policy of subsidy removal as critical to the nation’s fiscal survival.

However, opposition politicians have canvassed for and promised a return to different subsidy arrangements if elected into power.