SHOCKING MOVE! FG Considers Law That Could Tie Future Governments’ Hands Over Tinubu’s Petrol Subsidy Removal

The Federal Government is considering a major policy move that could make it difficult for future administrations to reverse some of President Bola Tinubu’s economic reforms, including the controversial removal of petrol subsidy.

The disclosure has placed the spotlight on a proposed national economic policy framework that could reshape how successive governments make major economic decisions.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, revealed the proposal on Monday at the 32nd Nigerian Economic Summit in Abuja, where he called for stronger legal and institutional measures to ensure continuity in economic policymaking.

According to Oyedele, the government wants to establish a framework that would guide successive administrations on taxation, tariffs, subsidies, investment and industrial development.

The objective, he explained, is to prevent policy reversals that have repeatedly disrupted economic planning, discouraged investors and weakened the effects of previous reforms.

“We now need to lock it in, in institutions, in law, as well as policy framework, so that it can be enduring,” the minister stated.

Petrol Subsidy: FG Sends Strong Warning

In a declaration likely to attract public attention, Oyedele insisted that the idea of restoring petrol subsidy should be abandoned.

“Any ideas of returning it, we should forget about it,” he said.

President Tinubu removed petrol subsidy after taking office on May 29, 2023. The decision, alongside the unification of the foreign exchange market, was intended to address economic distortions and improve government finances.

However, the reforms have also sparked concerns over rising living costs and the financial pressure on Nigerian households.

Oyedele argued that the government should focus on improving incomes rather than keeping prices artificially low.

“Let’s not suppress prices. Let’s focus on raising income,” he said.

Could Future Presidents Be Bound By The Proposed Framework?

This is where the proposal becomes particularly significant.

Oyedele said the government was examining whether the proposed economic framework should be backed by legislation and supported by stronger institutions.

He also suggested that political officeholders and government appointees should be made familiar with the agreed economic principles before assuming their responsibilities.

Under the proposed arrangement, copies of the framework could be attached to appointment letters to guide government officials.

The minister argued that policy uncertainty imposes additional costs on businesses and discourages investment.

“Policy uncertainty is an invisible tax on enterprise. And unlike most taxes, it generates no revenue for government; it only destroys value and discourages investment,” he said.

The framework proposes mandatory Policy Impact Assessments before major economic interventions. It also recommends an annual National Economic Scorecard to measure progress in real wages, employment and poverty reduction.

However, the proposal is not yet an approved government policy, and its final legal form remains uncertain.

Oyedele disclosed that public consultations would continue until November 27, 2026, after which the document would be submitted to the Federal Executive Council for approval and the National Economic Council for endorsement.

FG Reveals Inflation Target

The minister also disclosed that the government was targeting low single-digit inflation before the end of 2027, with the expectation that improved economic conditions could pave the way for single-digit interest rates.

He did not, however, provide a definite date for cheaper borrowing.

Oyedele cited student loans, pension payments, wage adjustments, improved access to foreign exchange and subsidised credit for small businesses among the developments associated with the government’s reforms.

He further urged wealthy Nigerians to pay their taxes, warning that insufficient government revenue could worsen inflation, borrowing costs and currency depreciation.

Bagudu Backs Tinubu As Soludo Calls For Faster Growth

The Minister of Budget and Economic Planning, Abubakar Bagudu, supported the government’s position, saying Tinubu had directed officials to sustain the reforms despite the immediate difficulties facing households.

“There will be no return to subsidy. There will be no return to those distortions,” Bagudu declared.

He also disclosed that more than $6 billion had been mobilised from the World Bank and other development partners to support household resilience and economic opportunities.

But Anambra State Governor Charles Soludo raised another concern, warning that Nigeria’s growth rate of about four per cent was not enough to drive rapid poverty reduction and generate sufficient jobs.

“The macroeconomic framework, the stability that is back, must never be taken for granted,” Soludo said, while calling for greater investment and faster economic expansion.

The big question now is whether the proposed framework will eventually become law—and how much room future administrations will have to change the country’s economic direction.