Subsidy Return: International investors, markets have written off Nigerian opposition politicians as unserious, says Oyedele

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said on Saturday that international investors and markets have written off Nigerian opposition politicians calling for a return to the subsidy regime.

Mr Oyedele spoke on the sidelines of the World Bank/IMF meetings in Bangkok, Thailand.

The minister responded to questions about how the government hopes to balance the needs of the investment community with domestic concerns among citizens.

“The second point I want to make, and hopefully this will not be misinterpreted, is that, in having all those meetings (with global development and financial organisations, investors and market leaders), I concluded that the markets, including the domestic market—because that you can read from the capital markets—and the international markets, have largely, largely written off the opposition in Nigeria as being unserious. That is why they have not priced in the proposed return of subsidy,” Mr Oyedele said.

“And the reason why you know what I’m saying is right is, God forbid a bad thing, if Mr President says today, ‘we are considering subsidy’, you will see the reflection in price. So maybe it’s good that the international community and the domestic capital markets are aware of who is sincere with Nigerian people and what direction of travel they should take.”

Nigeria has introduced a series of reforms the government said focused on fixing the economy’s structure. However, the impact has been enormous for many Nigerians grappling with the cost-of-living crisis. The government introduced reforms in the foreign exchange market, abolished what it termed a wasteful, corruption-ridden subsidy regime amid fiscal pressures, and institutionalised tax reforms.

While the Nigerian government, led by President Bola Tinubu, has defended its economic policy of subsidy removal as critical to the nation’s fiscal survival, opposition politicians—such as Atiku Abubakar of the ADC and Peter Obi of the NDC—have canvassed for and promised a return to different subsidy arrangements if elected into power.

Opposition

In August, Atiku said he believed a country’s progress and wealth should be measured by citizens’ ability to buy goods and services, not by how much revenue the government collects.

“On the question of subsidy, my position has not changed and will not change: I will restore it! A nation as blessed as ours has no business abandoning its citizens to hardship. Nigeria is rich enough to look after her own,” the former vice president vowed.

Mr Obi, who on his part had earlier warned that subsidy was an “organised crime” that would be removed, made a U-turn in a BBC interview on Tuesday, 6 October, saying he would restore the subsidy if elected president.

He argued that the subsidy regime’s major problem was the corruption surrounding its implementation.

“I’ll remove the corruption and retain the subsidy,” he said.

Mr Obi also explained how he intended to tackle corruption, arguing that his anti-corruption strategy would centre on the president’s conduct and that of his immediate family.

“If you are not stealing, if you are not involved, your wife and family are not involved, you reduce it by 50 per cent,” the presidential candidate said.

READ ALSO: No return to fuel subsidy, multiple exchange rates, Oyedele insists

Messrs Obi and Atiku are the leading opposition figures in Nigeria’s next general elections scheduled for January 2027. Previously, both opposition figures had been unequivocal about removing the petrol subsidy.

PREMIUM TIMES reported earlier on Saturday that Mr Oyedele said there will be no return to subsidy regimes, adding that the 30-day retail margin discount introduced by the government isn’t a subsidy arrangement.

“And let me be clear as well, this was a recurring question almost through all our engagements, but also with the rating agencies, with the investors, and the multilateral institutions. Every time they ask, are you reversing your plans? Are you bringing back subsidies? Let me be clear, there will be no return to fuel subsidies or multiple exchange rates,” he said.