The Minister of Finance and Coordinating Minister of Economy, Taiwo Oyedele, has insisted that the Presidency will not bring back fuel subsidy, following widespread clamour over the effect of its removal on the cost of living.

The Minister made the statement in Paris, France, as he and President Bola Tinubu met with global investors.

Oyedele noted that subsidies created economic distortions, adding that the prices of petrol would not be controlled because the Presidency believed the market was capable of regulating itself.

Following the removal of the petrol subsidy in May 2023, Nigeria’s inflation rate surged, reaching a 19-year high.

Headline inflation rose from 22.41 percent in May 2023 to 34.19 percent by June 2024, driven by sharply higher fuel, food, and transportation costs, deepening the cost-of-living crisis.

The removal, combined with currency devaluation, directly increased transport costs by nearly 300% and exacerbated poverty levels.

 

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