FG rules out return to fuel subsidy, multiple exchange rates

The Federal Government has ruled out restoring fuel subsidies and multiple exchange rates, reaffirming its commitment to economic reforms as it seeks to translate stabilisation gains into investment, economic growth and job creation.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stated this on Saturday at a news briefing following Nigeria’s participation in the IMF/World Bank Group Annual Meetings in Bangkok, Thailand.

Oyedele clarified that the 30-day retail margin discount on petrol introduced by the Nigerian National Petroleum Company Limited (NNPC) was a time-bound commercial decision to reduce margins and support Nigerians, rather than a subsidy funded with public resources.

Nigeria’s economy grows 4.4% in second quarter

Oyedele reiterated the government’s position on the reforms, ruling out a return to the previous fuel pricing and foreign exchange arrangements.

• “Let me be clear: there will be no return to fuel subsidies or multiple exchange rates,” he said.

He said Nigeria’s economy grew by 4.4% in the second quarter of 2026, while inflation had declined for four consecutive months to less than half its peak level recorded about two years earlier.

• He added that the country’s foreign reserves had risen above $35 billion, while its tax-to-GDP ratio increased from about 7% three years ago to 12.5% at the end of 2025, following GDP rebasing.
• The minister also said private capital inflows had risen approximately 20-fold, from about $300 million in 2023 to nearly $6 billion in 2026.
• He put Nigeria’s debt at about 36% of GDP, describing the debt profile as manageable and noting that the government was shifting its borrowing towards cheaper, longer-term and more affordable financing.

Oyedele said the priority was to convert these improvements into increased investment, faster economic growth and better employment opportunities.

Development partners signal continued cooperation

Oyedele said the World Bank Group had reaffirmed its support for Nigeria’s power and infrastructure sectors through guarantee instruments and other financing mechanisms.

• He added that the International Monetary Fund (IMF) had committed to continued technical support for fiscal policy implementation, transparency and national statistics.
• The European Union also identified energy and local pharmaceutical manufacturing as priority areas for collaboration under its Global Gateway programme.

However, Oyedele cautioned against interpreting these engagements as immediate financial disbursements, stressing that the commitments reflected a willingness to work with Nigeria rather than confirmed funding.

• “These are commitments to work together with us, not announcements of money.
• “We are playing down visibility and elevating credibility. We will not report progress as agreements until we have signed commitments and results begin to crystallise,” he said.

Nigeria seeks changes to global financial system

Oyedele said Nigeria used its position as chair of the Group of 24 (G24) to advocate reforms to the global financial system, including a stronger quota-based IMF, more transparent credit-rating methodologies, deeper local-currency markets and affordable climate finance.

• He cited findings presented by the United Nations Economic Commission for Africa at the G24 meetings, indicating that developing countries paid about $500 billion more annually to borrow than advanced economies.
• The minister described the additional borrowing costs faced by African countries as a “prejudice premium”, arguing that the risk premium attached to the continent often failed to reflect the economic fundamentals of individual countries.

He also expressed support for an African credit-rating agency, saying countries implementing credible economic policies should have access to cheaper financing.

On the energy transition, Oyedele said natural gas remained Nigeria’s transition fuel and called for climate financing arrangements that recognised differences in countries’ stages of development.

FG unveils $78.5 billion investment pipeline

The minister said the government had unveiled 65 investment projects valued at $78.5 billion under the Project Nigeria initiative, as previously reported by Nairametrics.

The projects cover energy, transport, industry and mining, agriculture, healthcare and services.

According to him, each project is supported by a feasibility study and structured to accommodate private-sector participation by local and foreign investors.

He added that investors from Asia and Europe had already submitted expressions of interest in the projects.