Again, FG rules out petrol subsidy return, vows to sustain economic reforms

The Federal Government says it will sustain its economic reforms and will not return to petrol subsidy.

The Minister of Budget and Economic Planning, Abubakar Bagudu, said this at the 32nd Nigerian Economic Summit, themed “Growth That Works: Delivering Jobs, Productivity and Shared Prosperity”, in Abuja on Monday, October 26, 2026.

Bagudu said the reforms were aimed at stabilising the economy, improving productivity, creating jobs and expanding prosperity for Nigerians.

“There will be no return to subsidy. We recognise the need to calibrate and do better,” Bagudu said.

The minister added that the President Bola Tinubu administration remained committed to reforms while strengthening domestic production, expanding infrastructure, and addressing poverty.

He said Nigeria’s economy has recorded positive growth for two consecutive quarters, while inflation and interest rates have declined.

Bagudu said revenue allocations to federal, state, and local governments had increased, with some states and local governments recording more than fivefold increases in monthly revenue.

Bagudu attributed the increase to the distribution of revenue among the three tiers of government to support their constitutional responsibilities.

The minister said the government was targeting a one-trillion-dollar economy, adding that achieving the goal required sustained growth and broader participation in economic activities.

IMF warns Nigeria against restoring petrol subsidy

He said Tinubu had challenged the administration to pursue an economy that included everyone and generated greater prosperity.

Bagudu said cooperation among federal, state, and local governments was critical to coordinating fiscal and monetary policies and improving spending on security and infrastructure.

He said the government was also prioritising grassroots development, skills acquisition, early childhood development, and support for small and medium-sized enterprises.

Bagudu stressed the importance of an effective private sector, saying investors needed confidence in the economy to expand businesses, increase productivity and generate employment.

Bagudu said the government would continue implementing reforms while adjusting policies to address poverty and improve economic outcomes.

The minister urged Nigerians to recognise the achievements recorded so far and support efforts to sustain the reforms.