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 economic pressures. Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, confirmed the government's stance during a press briefing on October 17, 2026, on the sidelines of the IMF and World Bank annual meetings in Bangkok, Thailand.
Government Maintains Position on Fuel Subsidy
Oyedele stated that the government's position on fuel subsidies and foreign exchange reforms remains unchanged. "Let me be clear, there will be no return to fuel subsidies or multiple exchange rates," he said, addressing concerns about the cost of living and rising energy prices.
The minister explained that the recent 30-day petrol retail margin discount announced by the Nigerian National Petroleum Company Limited (NNPC) is a commercial decision, not a subsidy. The temporary measure reduces margins rather than financing subsidies with public funds, he clarified.
Oyedele added that the government is considering ways to ease the effects of higher energy costs without reversing its economic policies. He argued that sustaining reforms is necessary to strengthen economic stability, attract investment, and support long-term growth.
Minister Challenges IMF Growth Forecast
Oyedele also announced that Nigeria is targeting economic growth of 7%, challenging the IMF's projections of 4.2% growth in 2026 and 4.3% in 2027. "We have a target of 7% growth," he said, expressing confidence that the country could outperform those forecasts if reforms are sustained and obstacles affecting businesses and households are addressed.
He identified lower inflation, reduced financing costs, and relief from food, energy, and logistics pressures as key factors for achieving stronger economic performance. Oyedele also pointed to easing inflation and stronger external reserves as signs of progress, stressing that these improvements must translate into better living standards.
Concerns Over AI and Future Jobs
The minister warned that Nigeria must prioritize job creation as artificial intelligence reshapes economies. Citing estimates from 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 this imbalance presents a significant challenge, particularly for developing countries like Nigeria, where a growing youth population needs productive employment. According to Oyedele, AI could boost economic output without creating enough jobs to absorb new workforce entrants.
Minister Urges Investment in Skills
Oyedele called for heavy investment in skills development and attracting capital into sectors capable of generating substantial employment. He also urged policies enabling African countries to benefit more from AI, using their data and technological capabilities to build domestic expertise.
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 sustaining economic reforms while ensuring improved indicators translate into jobs, lower cost pressures, and tangible benefits for households.
In a related development, the Major Energies Marketers Association of Nigeria (MEMAN) has opposed the Federal Government's proposed ₦1,350-per-litre ceiling on petrol costs. MEMAN warned that arbitrary price limits could distort competition without resolving supply and distribution challenges, calling instead for transparent, market-driven pricing and improved logistics.
