No going back to subsidies or price controls, Oyedele insists

The federal government says there will be no return to fuel subsidies or the introduction of price controls, reaffirming its commitment to market-oriented economic policies.

Speaking on Tuesday in Paris, Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, explained that subsidy regimes distort the economy and will not be reinstated under the current policy direction.

He also emphasised that while Nigeria remains committed to market pricing, regulation will still be important to prevent exploitation across the supply chain.

“We will not bring back subsidies because they create distortions in the economy, and we will not introduce price controls because we believe in markets while ensuring that regulation is responsible so that no supplier, trader, or manufacturer takes advantage of the Nigerian people,” he said.

In his inaugural speech on 29 May 2023, President Tinubu declared the withdrawal of subsidies, citing the absence of such provisions in the 2023 appropriation act.

As a result, petrol prices surged by approximately 200 per cent, from around N200 to over N500 at that time.

Also in June 2023, the Central Bank of Nigeria (CBN) unexpectedly announced the unification of exchange rates, and four months later, it removed the foreign exchange restrictions on 43 items that were imposed under Godwin Emefiele, the former governor of the CBN.