By Stephen Simon
The Federal Government has ruled out a return to petrol subsidies, declaring that private investment will play a central role in financing Nigeria’s next phase of economic growth.
Minister of Finance Taiwo Oyedele made the position known on Wednesday while speaking at Chatham House, a London-based international affairs think tank.
Oyedele said Nigeria would increasingly depend on domestic and foreign private capital rather than continued government borrowing to finance economic development.
He argued that relying heavily on borrowed funds was unsustainable and that the country needed a more investment-driven approach to growth.
“The petrol subsidy is gone and it is staying gone,” the minister said, reaffirming the administration’s position on the controversial policy.
He argued that relying heavily on borrowed funds was unsustainable and that the country needed a more investment-driven approach to growth.
“The petrol subsidy is gone and it is staying gone,” the minister said, reaffirming the administration’s position on the controversial policy.
The minister also highlighted an improvement in Nigeria’s inflation rate, which he said had declined from 21 per cent to 14.63 per cent over the preceding year.
He nevertheless indicated that inflation needed to fall further into single digits in the coming months to provide stronger relief for households and businesses.
The policy position comes amid continuing concerns over the cost of living, transport expenses and the impact of fuel prices on small businesses.
Greater private investment could support infrastructure development, production and employment if investors are encouraged by a stable economic environment and predictable government policies.
However, the effectiveness of the strategy will depend partly on whether increased investment translates into jobs, higher incomes and lower pressure on household budgets.
The government’s decision to maintain the end of petrol subsidies means that addressing the wider effects of fuel costs remains a major economic challenge.
