FG Rules Out Return to Fuel Subsidy and Multiple Exchange Rates

The Federal Government has ruled out a return to fuel subsidy and multiple foreign exchange rates, insisting that it will not reverse the economic reforms introduced under President Bola Tinubu’s administration.

Oct 18, 2026 - 09:40

FG Rules Out Return to Fuel Subsidy and Multiple Exchange Rates

The Federal Government has ruled out a return to fuel subsidy and multiple foreign exchange rates, insisting that it will not reverse the economic reforms introduced under President Bola Tinubu’s administration.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, spoke on Saturday while responding to concerns about the government’s economic policies ahead of the 2027 general elections on the sidelines of the World Bank and International Monetary Fund, IMF, meetings in Bangkok, Thailand.

The Minister spoke against the backdrop of renewed political debate over the removal of petrol subsidies, with opposition figures proposing alternative arrangements to reduce the financial burden on Nigerians ahead of the 2027 elections.
Oyedele said the Federal Government remained committed to its decision to remove fuel subsidies and liberalise the foreign exchange market, adding that the
possibility of reversing the policies had repeatedly come up during engagements with international rating agencies, investors and multilateral institutions.
According to the Minister, the government had no plans to reintroduce fuel subsidies or return to a system of multiple exchange rates.

His words, “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.”
Former Vice-President and presidential candidate of the African Democratic Congress, ADC, Atiku Abubakar and his counterpart in the Nigeria Democratic Congress, NDC, Peter Obi, have criticised aspects of the government’s economic policies and advocated changes to ease the high cost-of-living crisis.

Atiku had proposed an alternative subsidy arrangement linked to domestic production, including the supply of crude oil to local refineries.

Furthermore he also criticised the government’s recent 30-day petrol discount, describing it as a short-term measure that would not provide lasting relief to Nigerians.
Obi has similarly argued that the reforms were implemented without adequate production-driven measures to protect citizens from their economic consequences.
However, the Tinubu administration has consistently defended the removal of fuel subsidies and the liberalisation of the foreign exchange market, describing the policies as necessary to address longstanding structural problems in the economy.
The government has maintained that the former subsidy system placed an unsustainable burden on public finances, while the previous foreign exchange arrangements encouraged currency arbitrage, corruption and the depletion of the country’s foreign reserves.