Nigeria to fund next growth phase with private capital, Oyedele says petrol subsidy stays gone

Nigeria will increasingly rely on private investors at home and abroad to finance its next phase of growth instead of more state borrowing, Finance Minister Taiwo Oyedele said on October 21 at an event at Chatham House in London. He also ruled out any return to petrol subsidies.

'The next phase of growth will be financed by private capital, domestic and foreign, and not by the state borrowing more,' Oyedele said. He said Nigeria had been living on 'borrowed money, and increasingly, borrowed time', but that was coming to an end.

Reforms and subsidy stance

President Bola Tinubu's reforms since taking office in 2023, including scrapping the petrol subsidy and overhauling the foreign exchange regime, have helped stabilise public finances, bolster foreign reserves and attract investment, he said. 'The petrol subsidy is gone and it is staying gone,' Oyedele said.

The measures have also inflicted a heavy cost-of-living squeeze. The government's challenge is to translate improved macroeconomic stability into faster growth, jobs and higher living standards. Oyedele said the best way to cushion the vulnerable was ensuring economic and wage growth, as well as targeted support. Some 10 million households are currently receiving cash transfers under the programme, he said. 'Even though you’re promising a better future, they have to be alive to see it,' he said.

Inflation and growth targets

Inflation has fallen to 14.63% from 21% a year ago, but Oyedele said it needed to reach 'low single digits over the next coming months.' The International Monetary Fund forecasts Nigeria's annual economic growth at 4.2% in 2026 and 4.3% in 2027. Oyedele said such projections were 'too conservative', adding that the government is targeting average annual growth of about 7% over the next five years.

He also said the government is working to transfer more responsibilities to the states and to 'enhance the ability the federal government to generate revenue without imposing burden on the people.'

For Nigerian businesses and consumers, the message is that policy support will lean more on private investment and targeted cash transfers than on state borrowing or petrol subsidies. The pressure remains on faster wage and job growth to ease the cost-of-living strain.