From Allafrica · · 3m
Nigeria: Tinubu Rejects Fuel Subsidy Return
Tinubu vows Nigeria won't return to fuel subsidies despite political pressure.
In brief
Tinubu vows Nigeria won't return to fuel subsidies despite political pressure. President Tinubu insists Nigeria won't reverse fuel subsidy removal, warning it would trigger capital flight and push the naira to N3,000 per dollar. Originally reported by Allafrica.
Tinubu Rejects Fuel Subsidy Return
President Bola Ahmed Tinubu last night revisited the issue of fuel subsidy removal and once again foreclosed its return, saying the nation won't go 'back to Egypt' on the matter.
“I removed the fuel subsidy on my first day in office. Nigeria will not go back to that era.”
Oyedele Warns Subsidy Restoration Risks Economy
Minister of Finance Taiwo Oyedele warned that restoring fuel subsidy would devastate Nigeria's economy, trigger capital flight, weaken the naira and impose higher petrol prices on Nigerians.
“We're at the tail end of it, which is why I keep saying if it's a joke, anybody that is talking about reversing the subsidy should please stop it.”
Capital Flight Threatens Naira
Oyedele predicted capital flight could push the naira to N3,000 per dollar and petrol prices to N5,000 per litre if subsidies were restored.
“When you do any subsidy, like is happening to Indonesia, just say you want to do it, not that you have even started.”
Tinubu Defends Economic Policies
Tinubu defended his administration's economic policies, stating Nigeria would outperform IMF's 4.1% growth forecast for 2026 despite challenges.
“We will exceed the forecast that the IMF has for us for 2026. We would exceed the one for 2027.”
City Boy Movement Engagement
Tinubu highlighted the City Boy Movement's grassroots structures, verifiable membership database, and community engagement initiatives as evidence of youth commitment to national development.
“I did not see a crowd. I saw Nigeria.”
Oyedele on Fuel Tax Policy
Oyedele stated the government would consider introducing fuel taxes when economic conditions and household incomes could accommodate the additional burden.
“Fuel taxes could provide dedicated funding for road infrastructure and strategic fuel reserves.”
Shettima Defends Tinubu
Vice President Shettima criticized former Vice President Atiku Abubakar for criticizing the Tinubu government, warning opposition politicians against insulting or disrespecting Tinubu.
“Desperation is not insanity.”
Fiscal Transparency Efforts
Oyedele explained the government is improving fiscal data transparency to address discrepancies between World Bank and Debt Management Office figures.
“We're not doing well in terms of reporting government data.”
State Government Responsibilities
Oyedele emphasized the federal government's role in macroeconomic stability while state governments handle basic education, healthcare, and infrastructure.
“The primary responsibility of the federal government is economic, macroeconomic stability.”
Nigeria's Economic Outlook
Oyedele predicted Nigeria would outperform IMF's growth projections of 4.1% for 2026 and 4.3% for 2027, with potential for higher growth in subsequent years.
“We will exceed the forecast that the IMF has for us for 2026. We would exceed the one for 2027.”
Fuel Discount Arrangement
The government implemented a 30-day discount arrangement on fuel prices to clarify economic realities without committing to subsidy restoration.
“It's one of the reasons why some people say it's still a subsidy, but it's not a subsidy unless you're paying from the treasury and you're selling below market price.”
Oyedele on Crude Oil Shortages
Oyedele stated Nigeria lacks sufficient crude oil to support a subsidy policy, noting that expanding production takes years, not months.
“We have to clarify. Number two, we actually do not have the crude to give.”
City Boy Movement Initiatives
The City Boy Movement has supported over one million students through the Nigerian Education Loan Fund and expanded access to credit via the Nigerian Consumer Credit Corporation.
“The Nigerian Education Loan Fund (NELFUND) supported more than one million students.”
Tinubu's Youth Focus
Tinubu identified the Nigerian Education Loan Fund, Nigerian Consumer Credit Corporation, and Three Million Technical Talent program as key youth-focused economic initiatives.
“The Three Million Technical Talent (3MTT) programme equips young Nigerians with globally competitive digital skills.”
Tinubu's Message to Son
Tinubu urged his son Seyi to deepen commitment to public service, youth engagement, and responsible leadership, setting an example for future generations.
“My son, Seyi, you have only started. Do more. Go further. Serve harder.”
Fiscal Data Improvements
Oyedele confirmed the government is working to improve fiscal data transparency to address discrepancies between World Bank and Debt Management Office figures.
“We're not doing well in terms of reporting government data.”
The short version
President Tinubu insists Nigeria won't reverse fuel subsidy removal, warning it would trigger capital flight and push the naira to N3,000 per dollar.
