The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has insisted that the Presidency will not bring back fuel subsidy, following widespread clamour over the effect of its removal on the cost of living.

The minister stated this on Tuesday in Paris, France, during President Bola Ahmed Tinubu’s meeting with global investors.

Oyedele noted that subsidies created economic “distortions,” adding that the prices of fuel would not be controlled because the Presidency believed the market was capable of regulating itself.

“We will not bring back fuel subsidy because it creates distortions for the economy, and we won’t introduce price control because we believe in the market. The situation in Iran presents new opportunities for us as the world looks to diversify sources of energy and invest in new markets,” the minister said.

However, according to a statement by his Special Assistant on Social Media, Dada Olusegun, Tinubu, while speaking earlier, told the investors that Nigeria had recorded stability in its foreign exchange following the removal of the “burden” of fuel subsidy.

Also, another statement by Special Adviser to the President on Information and Strategy, Bayo Onanuga, emphasised that the economic reform programme of Tinubu’s administration included measures to remove economic distortions and stabilise macroeconomic indicators, laying the foundation for sustained inclusive growth.

He also emphasised transparency and fiscal discipline, and the rationale for the swift implementation of bold reforms.

Director-General of the Debt Management Office, Patience Oniha, assured investors of the government’s responsible approach to debt financing and its focus on sustainable debt management.

RELATEDLY, an energy policy expert, Samuel Caulcrick, has warned that any move by the Federal Government to reintroduce petroleum subsidies through crude supply to local refineries would lead to cross-border fuel smuggling and undermine recent gains from deregulation.

Caulcrick, while reacting to growing calls for the government’s support to local refineries to ease the cost of petrol and other fossil fuels, emphasised that such interventions could inadvertently benefit neighbouring countries rather than Nigerians.

The expert, while speaking with The Guardian in Lagos, yesterday, insisted that price differentials across borders historically create incentives for illicit trade.

He said that smuggling was essentially a form of market arbitrage driven by price imbalances, adding that whenever commodities could move across borders, traders are incentivised to exploit pricing gaps.

Nigeria, he said, had long struggled to contain the smuggling of refined petroleum products, noting that removal of fuel subsidies and the adoption of market-driven pricing had helped to narrow profit margins for smugglers, acting as a natural deterrent.

He, however, said that subsidy removal had significantly increased the cost of living for many Nigerians, raising concerns about affordability and economic hardship.