Tinubu In Paris, Woos Investors, Defends Nigeria’s Subsidy-Free Economy

By Maryanne Awuya

Despite public concern over inflation, Finance Minister Taiwo Oyedele confirmed on Tuesday that the federal government will not reinstate the fuel subsidy.

At an investment summit in Paris alongside President Tinubu, the Minister defended the reform, characterizing subsidy payments as an unsustainable burden that hampers the national economy.

“We will not bring back fuel subsidy because it creates distortions for the economy, and we won’t introduce price control because we believe in the market,” he said.

Persecondnews recalls that the removal of petrol subsidy in May 2023 had triggered a sharp rise in inflation, with headline inflation climbing from 22.41 percent to 34.19 percent by June 2024.

Food inflation also surged, crossing 39 percent by October 2024, as higher fuel and transportation costs filtered into the broader economy.

Transport costs reportedly increased by nearly 300 percent, worsening poverty levels and deepening the cost-of-living crisis across the country.

Defending the policy, President Tinubu told investors that the decision to scrap subsidy had helped stabilise Nigeria’s foreign exchange market.

“Subsidy that was a burden to the entire country was removed, and ever since we have achieved FX stability,” Tinubu said, according to a statement by his aide, Dada Olusegun.

In a separate statement, presidential spokesman Bayo Onanuga said the administration’s reforms were aimed at eliminating economic distortions, improving transparency, and laying the foundation for sustained growth.

Oyedele also pointed to what he described as strong economic performance, noting that Nigeria recorded 11.2 percent GDP growth in dollar terms in 2025, reinforcing the country’s target of building a $1 trillion economy by 2030.

He added that the government would prioritise translating reforms into tangible benefits for citizens, including publishing quarterly financial data to improve accountability.

Also speaking, the Director-General of the Debt Management Office, Patience Oniha, assured investors of Nigeria’s commitment to responsible borrowing and sustainable debt management.

The government maintained that while the reforms have come with short-term pain, they are necessary to stabilise the economy and attract long-term investment.