KEY POINTS
- The Federal Government says it will maintain market-based petrol pricing and will not introduce fuel price controls despite global oil market volatility.
- Finance Minister Wale Edun said the Tinubu administration prefers targeted measures to ease living costs rather than reversing economic reforms.
- Nigeria’s expanding domestic refining capacity and CNG vehicle conversion programme are expected to strengthen energy resilience and reduce fuel costs
The Federal Government has reaffirmed its commitment to maintaining a market-driven pricing regime for petrol, stressing that it will not impose price controls even as escalating geopolitical tensions in the Middle East continue to trigger volatility in global oil markets.
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made this known during an interview on Politics Today, a current affairs programme aired on Channels Television on Wednesday.
According to the minister, the administration of President Bola Ahmed Tinubu remains committed to sustaining economic reforms centred on market-based pricing for petroleum products and foreign exchange. He explained that these reforms were introduced to eliminate long-standing distortions that had affected Nigeria’s economy for years.
Edun emphasised that rather than reversing the reforms, the government would pursue alternative policy measures aimed at easing the cost-of-living burden on Nigerians.
Tinubu Administration Anchors Policy on Market Pricing
The minister reiterated that market-based pricing remains a central pillar of the government’s economic strategy, noting that the policy reflects a broader effort to create a more transparent and efficient economy.
According to him, the approach reflects the philosophy of President Tinubu’s administration, which seeks to allow market forces to determine the prices of petroleum products rather than relying on government subsidies or administrative price controls.
“It is the market price. That is what has been instilled by Mr President that was missing for so long — market pricing of petroleum products,” Edun said.
He noted that while geopolitical tensions, particularly conflicts in the Middle East, may influence global oil prices and subsequently impact domestic fuel costs, the government would avoid direct intervention in pricing except under extreme circumstances.
When asked whether authorities might step in if petrol prices surge significantly, Edun said government intervention would remain a last resort.
Edun also highlighted Nigeria’s growing domestic refining capacity as a major factor strengthening the country’s resilience against external shocks in global energy markets.
He noted that Nigeria currently consumes about 50 million litres of petrol daily, and domestic refiners have indicated their capacity to meet this demand.
Key among these facilities is the massive Dangote Refinery, alongside several smaller and emerging refineries that are gradually expanding Nigeria’s local refining capacity.
