Federal Govt Rules Out Subsidy Return, Vows to Sustain Reforms

The federal government has ruled out any return to fuel subsidies and vowed to sustain the economic reforms of President Bola Tinubu’s administration, despite the pressure on households and businesses.

Minister of Budget and Economic Planning, Senator Abubakar Bagudu, made the declaration on Monday in Abuja at the 32nd Nigerian Economic Summit (NES#32), themed “Growth that Works: Delivering Jobs, Productivity and Shared Prosperity”.

“There will be no return to the fuel subsidy and the economic distortions associated with the previous system,” he said.

“For those of us serving under the President and Vice President, the instruction has been clear: we must stay the course,” he added.

Opposition politicians, including the African Democratic Congress presidential candidate, Alhaji Atiku Abubakar, have promised to restore the petrol subsidy to reduce the rising cost of living.

Bagudu said that would turn back the clock and erode the gains of the reforms, which he said stabilised the economy and put the country on a growth path.

READ ALSO: Fuel Subsidy Or Discount?

He recalled that the President had taken deliberate steps to ensure the continuity of the reforms. At a National Economic Council meeting in October 2025, he said, Tinubu presented a memorandum on their sustainability. The discussion acknowledged differing opinions on the reforms and the need for a framework to ensure their continuity.

Bagudu said sustaining the reforms would not preclude necessary policy adjustments to respond to prevailing economic realities and to improve implementation.

“The task before us is to sustain progress, improve implementation, address the challenges facing households and businesses, and ensure that economic growth translates into jobs, productivity and shared prosperity for Nigerians,” he said.

He said the administration is investing in agriculture, manufacturing, infrastructure, digital technology and human capital to achieve inclusive, sustainable growth.

The minister commended the Nigerian Economic Summit Group (NESG) for sustaining a platform for engagement among government, the private sector, organised labour, academia, civil society and development partners. He said the summit offers an opportunity to examine the country’s economic challenges, assess ongoing reforms and develop practical recommendations to accelerate national development.

Revenue and fiscal federalism

Bagudu said the Renewed Hope Agenda aims to reposition the economy for sustainable growth by addressing longstanding structural distortions, strengthening the foundations for investment and expanding productive activities.

He pointed to improvements in key macroeconomic indicators and increased revenue accruing to the Federal, State and Local Governments. He said the additional resources available to subnational governments present an opportunity to expand infrastructure, improve public services and advance development priorities.

According to him, the distribution of increased revenue across the federation reflects the President’s commitment to fiscal federalism and to the effective functioning of the three tiers of government. He said stronger coordination among federal, state and local authorities is essential to converting available resources into measurable development outcomes.

$1 trillion target

Bagudu said Nigeria must sustain its reform efforts, strengthen domestic production and mobilise greater investment to achieve its ambition of a one-trillion-dollar economy by 2030. He said the target would require improved productivity, stronger private-sector participation, expanded industrial capacity and a more competitive business environment.

He acknowledged the economic pressures facing households and businesses. Reforms, he said, must be accompanied by effective implementation, responsive policy adjustments, and interventions that protect vulnerable populations, support domestic production and improve livelihoods. The success of the programme, he said, will depend on its ability to create opportunities and translate economic gains into better living conditions.

Ward-level development

On grassroots development, Bagudu highlighted the Renewed Hope Ward Development Plan, which aims to identify and unlock productive opportunities across Nigeria’s 8,809 wards.

He said the initiative will identify the distinctive economic strengths of communities and develop targeted interventions to stimulate local production, increase household incomes and create jobs. Communities with potential in agriculture, fishing, livestock, textiles and other activities, he said, need support tailored to their resources and opportunities.

He said unlocking potential at ward level would broaden the foundations of national growth, strengthen local economies and extend development beyond major urban centres.

Agriculture and manufacturing

Bagudu described agriculture as central to economic diversification, food security and employment. He stressed the importance of access to farm inputs, agricultural financing, mechanisation, irrigation and stronger value chains, alongside the National Agricultural Mechanisation Policy and the National Agricultural Mechanisation Investment Strategy.

He said higher production must go with improvements in processing, storage, transport, distribution and market access. These, he said, are necessary to reduce post-harvest losses, improve food availability and affordability, and raise farmers’ incomes.

On manufacturing, he said the sector is key to local value addition, skilled employment and reducing dependence on imports. He cited the Nigeria Industrial Policy 2025 and the Nigeria First Policy as part of efforts to deepen local supply chains and improve the competitiveness of Nigerian enterprises.

Digital, finance and trade

The minister identified digital technology, financial services and trade as sectors with considerable potential to boost productivity and expand economic opportunities.

He highlighted the Federal Government’s collaboration with the European Union and the European Bank for Reconstruction and Development on a fibre-optic initiative covering about 90,000 kilometres of network deployment, aimed at expanding broadband connectivity and supporting business growth.

Human capital

Bagudu said Nigeria’s long-term competitiveness depends on the knowledge, health, skills and productive capacity of its people. He cited government interventions in education, healthcare, foundational learning, skills development and social protection, including the Human Capital Opportunities for Prosperity and Equity programmes and the Nigerian Education Loan Fund.

He said young Nigerians must be prepared for a labour market being reshaped by artificial intelligence and other emerging technologies. Relevant digital, technical and entrepreneurial skills, he said, would be critical to improving employability and encouraging innovation.

Access to finance

The minister called for improved access to finance for micro, small and medium-sized enterprises, saying businesses need the capacity to invest, expand and create jobs. He highlighted efforts to develop financing support mechanisms, including a proposed credit guarantee framework, to address barriers that keep viable enterprises from accessing capital.

Bagudu urged government and private-sector stakeholders to deepen collaboration and mobilise domestic and international capital to bridge the country’s development financing gap. He said credible public-private partnerships, stronger domestic capital markets and improved access to finance are essential for expanding productive capacity and attracting investment.