The Federal Government has ruled out any return to fuel subsidies or the introduction of price controls, reinforcing its commitment to market-driven economic policies.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Tuesday in Paris, stating that subsidy regimes distort the economy and will not be reinstated.

“We will not bring back subsidies because they create distortions in the economy, and we will not introduce price controls because we believe in markets while ensuring that regulation is responsible so that no supplier, trader, or manufacturer takes advantage of the Nigerian people,” he said.

Focus on Regulation, Not Price Control

Oyedele explained that while the government supports market-based pricing, regulatory oversight will remain in place to prevent exploitation across the supply chain.

He added that global developments, including tensions involving Iran, present both risks and opportunities for Nigeria, particularly in attracting energy investments and boosting revenue under current pricing conditions.

Inflation and Economic Context

Nigeria has experienced sustained inflationary pressure since the removal of petrol subsidy in May 2023. Data from the National Bureau of Statistics shows that headline inflation rose from 22.41 per cent in May 2023 to 34.19 per cent by June 2024, driven largely by increases in fuel, food, and transportation costs.

Tinubu Links Policy to FX Stability

Earlier, President Bola Ahmed Tinubu told investors that the removal of fuel subsidy has contributed to stabilising Nigeria’s foreign exchange market.

“Subsidy that was a burden to the entire country was removed, and ever since we have achieved FX stability,” he said in a statement released by his aide.

The post FG Rules Out Fuel Subsidy Return, Reaffirms Market Pricing Policy appeared first on Housing TV Africa.

Two major oil unions; PENGASSAN and NUPENG have strongly opposed the Federal Government’s reported plan to divest up to 35% of its stakes in joint venture oil assets managed by the Nigerian National Petroleum Company Limited (NNPCL).

At a joint press briefing in Abuja, PENGASSAN President Festus Osifo warned that the sale would “mortgage the future of Nigerians for temporary gains,” arguing that it could bankrupt NNPCL and reduce its ability to fund salaries and support the national budget.

Currently, the government holds 55–60% of these assets. The unions said any reduction would weaken Nigeria’s national oil company and threaten its contributions to the economy.

“The NNPCL manages JV assets on behalf of the Federation. Every oil well belongs to the Nigerian people,” Osifo stated. “If these stakes are sold, the federation loses.”

The proposal comes as President Bola Tinubu pushes for reforms to optimize spending and boost federal revenue. However, the unions warned that amending the Petroleum Industry Act (PIA) just three years after it was passed would damage investor confidence.

“Investors are just beginning to understand the PIA, and suddenly government wants to change it again,” said NUPENG President Williams Akporeha. “Every serious oil-producing country protects its national oil company. Here, we are doing the opposite.”

They also accused the Ministry of Finance of trying to sideline the Ministry of Petroleum in managing NNPCL, calling it a “backdoor hijack.”

While not announcing a strike, the unions issued a firm warning: “We will fight with everything to stop this,” Osifo declared.

Both unions urged President Tinubu to personally halt the divestment and maintain NNPCL’s core national role.

The post Oil Unions Reject FG’s Plan to Sell Assets appeared first on Housing TV Africa.