Nigeria to fund next growth phase with private capital, rules out petrol subsidy return

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

Speaking at an event at think tank Chatham House in London, Oyedele said the country had been living on “borrowed money, and increasingly, borrowed time”, but that period was coming to an end.

Private capital, not more state borrowing

“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 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. On petrol, he was direct: “The petrol subsidy is gone and it is staying gone.”

The reforms have also inflicted a heavy cost-of-living squeeze. Oyedele said the government’s challenge is to turn improved macroeconomic stability into faster growth, jobs and higher living standards. He said the best way to cushion vulnerable Nigerians is to ensure economic and wage growth, alongside targeted support. About 10 million households are currently receiving cash transfers, 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, according to the minister. He said it needs to reach “low single digits over the next coming months.” On growth, he pushed back against the International Monetary Fund’s forecasts. The IMF projects Nigeria’s annual economic growth at 4.2% in 2026 and 4.3% in 2027. Oyedele called those projections “too conservative” and said 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.”

What it means for Nigeria

The direction is clear: less reliance on state borrowing and more private capital, with no return to petrol subsidies. For households and businesses, that means the subsidy removal remains a key cost factor, while the government’s pitch is that private investment and faster growth will ease the pressure over time.