FG Unveils Final Position on Fuel Subsidy, Naira Devaluation Amid Petrol Price Hikes
- Federal Government rules out restoring petrol subsidies and multiple exchange rates, despite rising fuel prices and calls for relief
- Oyedele targets 7% growth, challenging IMF forecasts and pointing to lower inflation and stronger reserves as signs of progress
- Minister warns AI may outpace job creation, urging investment in skills and sectors that can provide work for young Nigerians
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Federal Government has ruled out restoring petrol subsidies and returning to multiple exchange rates despite rising fuel prices and renewed calls for relief from the economic pressures facing Nigerians.
Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, said the government would maintain the economic reforms introduced under President Bola Tinubu, arguing that reversing them could undermine progress in stabilising the economy and weaken investor confidence.
Source: Twitter
Oyedele spoke on Saturday, October 17, 2026, during a press briefing on the sidelines of the 2026 International Monetary Fund (IMF) and World Bank annual meetings in Bangkok, Thailand.
FG maintains position on fuel subsidy
The minister said the government's position on fuel subsidies and foreign exchange reforms remained unchanged, despite concerns about the cost of living and rising energy prices.
“Let me be clear, there will be no return to fuel subsidies or multiple exchange rates,” Oyedele said.
He explained that the recent 30-day petrol retail margin discount announced by the Nigerian National Petroleum Company Limited (NNPC) was a commercial decision intended to cushion the impact of high fuel prices.
According to him, the temporary measure involves reducing margins rather than providing subsidies financed with public funds.
Oyedele added that the government was considering ways to ease the effects of higher energy costs without reversing its economic policies.
He maintained that sustaining the reforms was necessary to strengthen economic stability, attract investment and support long-term growth.
Minister challenges IMF growth forecast
Oyedele also said Nigeria was targeting economic growth of 7%, arguing that the IMF's projections did not fully reflect the country's potential.
The Fund projected Nigeria's economy would grow by 4.2% in 2026 and 4.3% in 2027.
However, the minister expressed confidence that the country could outperform those forecasts if the government sustained its reforms and addressed obstacles affecting businesses and households.
“We have a target of 7% growth,” he said.
He identified lower inflation, reduced financing costs and relief from food, energy and logistics pressures as important factors in achieving stronger economic performance.
Oyedele also pointed to easing inflation and stronger external reserves as signs of progress, while stressing that these improvements must translate into better living standards.
FG raises concerns over future jobs
The minister warned that Nigeria must prioritise job creation as artificial intelligence (AI) reshapes economies and threatens to widen the gap between economic growth and employment opportunities.
Citing estimates discussed during the meetings, Oyedele said about 1.2 billion young people would enter the global labour market over the next 10 to 15 years, while only about 400 million jobs were projected to be created.
He said the imbalance presented a significant challenge, particularly for developing countries such as Nigeria, where a growing youth population needs productive employment.
According to Oyedele, AI could boost economic output without creating enough jobs to absorb new entrants into the workforce.
Minister urges investment in skills
Oyedele said Nigeria must invest heavily in skills development and attract capital into sectors capable of generating substantial employment.
He also called for policies that would enable African countries to benefit more from artificial intelligence, including using their data and technological capabilities to build domestic expertise.
Source: Getty Images
The minister argued that economic progress should not be measured by growth figures or investment flows alone.
He said multilateral development institutions should also be assessed by the number and quality of jobs their interventions create.
For Nigeria, the challenge is to sustain economic reforms while ensuring that improved economic indicators translate into jobs, lower cost pressures and tangible benefits for households.
Marketers announce new position on FG’s petrol price
Legit.ng earlier reported that the Major Energies Marketers Association of Nigeria (MEMAN) has opposed the Federal Government’s proposed ₦1,350-per-litre ceiling on petrol costs, warning that arbitrary price limits could distort competition without resolving persistent supply and distribution challenges.
The association instead called for transparent, market-driven pricing, improved logistics and lower operating costs, arguing that sustainable fuel price stability depends on addressing supply bottlenecks rather than imposing government-determined limits.
Source: Legit.ng
