By Emmanuella Opara| October 17th 2026
KEY POINTS
- The Federal Government has ruled out restoring fuel subsidies and multiple exchange rates.
- Finance Minister Taiwo Oyedele says Nigeria’s economy grew by 4.4 per cent in the second quarter of 2026, while foreign reserves exceeded $35 billion.
- The government has unveiled 65 investment projects valued at $78.5 billion to attract local and foreign investors.
- Nigeria is seeking affordable financing, stronger job creation and increased investment to translate economic stability into improved living standards.
MAIN STORY
The Federal Government has ruled out restoring fuel subsidies and multiple exchange rates, reaffirming its commitment to economic reforms as it seeks to attract investment, accelerate growth and create jobs.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, stated this at a news briefing following Nigeria’s participation in the IMF and World Bank Group Annual Meetings in Bangkok, Thailand, on Saturday.
Oyedele explained that the 30-day retail margin discount on petrol recently introduced by the Nigerian National Petroleum Company Ltd. (NNPC) was a temporary commercial measure and not a subsidy financed with public funds.
“Let me be clear: there will be no return to fuel subsidies or multiple exchange rates,” he said.
According to the minister, concerns about a possible reversal of the reforms featured prominently in discussions with international investors, rating agencies and multilateral institutions.
He said the government was focused on converting the gains of economic stabilisation into faster growth, increased investment and decent jobs.
Oyedele disclosed that Nigeria’s economy grew by 4.4 per cent in the second quarter of 2026, while inflation had declined for four consecutive months to less than half its peak level recorded about two years earlier.
He added that foreign reserves had risen above $35 billion.
The minister also reported an improvement in the country’s tax-to-gross domestic product ratio, which increased from about seven per cent three years ago to 12.5 per cent at the end of 2025, following GDP rebasing.
Private capital inflows, he said, had risen approximately 20-fold, from about $300 million in 2023 to nearly $6 billion in 2026.
Oyedele put Nigeria’s debt at about 36 per cent of GDP, describing the debt profile as manageable. He said the government was shifting its borrowing towards cheaper, longer-term and more affordable financing.
To attract further investment, the government has unveiled 65 projects worth $78.5 billion under the Project Nigeria initiative.
The projects cover energy, transport, industry and mining, agriculture, health and services. According to Oyedele, each project has a feasibility study and is structured to accommodate participation by local and foreign private investors.
He said investors from Asia and Europe had already submitted expressions of interest.
The minister described the initiative as part of efforts to position Nigeria as an investment destination under the theme, “Partner Nigeria: Reformed, Resilient, Ready to Scale”.
He added that the government would continue developing the investment pipeline through the ministry’s investment platform.
On international cooperation, Oyedele said the World Bank Group had reaffirmed its support for power and infrastructure through guarantees and other financing mechanisms.
He said the International Monetary Fund had committed to continued technical support for fiscal policy implementation, transparency and national statistics.
The Islamic Development Bank and other multilateral institutions had also indicated readiness to expand sustainable financing, while the United States Treasury offered deeper technical cooperation in fiscal policy, administration and financial integrity.
Oyedele further said the European Union had identified energy and local pharmaceutical manufacturing as priority areas for collaboration under its Global Gateway programme.
However, he cautioned that the commitments did not amount to immediate financial disbursements.
“These are commitments to work together with us, not announcements of money,” he said.
“We are playing down visibility and elevating credibility. We will not report progress as agreements until we have signed commitments and results begin to crystallise,” he added.
Nigeria also used its position as chair of the Group of 24 (G24) to advocate changes to the global financial system, including a stronger quota-based IMF, transparent credit-rating methodologies, deeper local-currency markets and affordable climate financing.
Oyedele cited findings presented by the United Nations Economic Commission for Africa at the G24 meetings, which indicated that developing countries paid about $500 billion more annually to borrow than advanced economies.
He described the additional borrowing costs faced by African countries as a “prejudice premium”, arguing that the risk premium attached to the continent often failed to reflect individual countries’ economic fundamentals.
He also supported the establishment of an African credit-rating agency, saying countries with credible economic policies should have access to cheaper financing.
On the energy transition, Oyedele maintained that natural gas remained Nigeria’s transition fuel and called for climate financing arrangements that accounted for differences in countries’ development levels.
The minister also highlighted employment challenges arising from population growth and advances in artificial intelligence (AI).
He said projections indicated that about 1.2 billion young people would enter the global labour market over the next 15 years, while current trends suggested that only about 400 million jobs would be created, potentially leaving 800 million people without adequate employment opportunities.
Although AI could improve productivity, he warned that it could also generate economic growth without a corresponding increase in jobs.
He said Nigeria would prioritise skills development, investment in labour-intensive sectors and policies to ensure that the benefits of AI were shared fairly.
Oyedele urged the Bretton Woods institutions to assess economic performance not only by growth rates and funds mobilised, but also by the number and quality of jobs created.
He said Nigeria returned from the Bangkok meetings with renewed confidence in its reforms but acknowledged the need to translate economic stability into better living standards.
“Stability was the first test; growth that employs our people is the second,” he said.
THE ISSUES
The government’s decision to rule out a return to fuel subsidies and multiple exchange rates signals its intention to maintain the current reform direction despite concerns about the impact on households and businesses.
At the same time, the administration faces the challenge of ensuring that improved economic indicators translate into lower inflation, affordable credit, stronger investment and employment opportunities.
The proposed $78.5 billion investment pipeline could support infrastructure and economic expansion, but expressions of interest and international commitments do not necessarily translate into signed agreements or immediate funding.
The employment outlook also presents a major challenge, particularly as AI changes labour markets and developing economies seek to create enough jobs for their growing populations.
WHAT’S BEING SAID
“Let me be clear: there will be no return to fuel subsidies or multiple exchange rates,” Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, said.
“These are commitments to work together with us, not announcements of money,” Taiwo Oyedele said.
“Stability was the first test; growth that employs our people is the second,” Taiwo Oyedele said.
WHAT’S NEXT
The government plans to advance its investment pipeline, deepen cooperation with international financial institutions and attract affordable financing for infrastructure and other priority sectors.
It will also focus on skills development and labour-intensive investments to expand employment opportunities and ensure economic growth delivers broader benefits.
BOTTOM LINE
Nigeria is maintaining its economic reforms while seeking investment, cheaper financing and stronger job creation. The government’s next challenge is to turn improving economic indicators and international commitments into tangible benefits for businesses and households.
