The Federal Government is considering a law that would prevent future administrations from reversing major economic reforms, including petrol subsidy removal, as it seeks to establish long-term policy consistency and attract investment.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Monday at the 32nd Nigerian Economic Summit in Abuja.
Oyedele said the government was consulting Nigerians on a proposed economic policy framework that could be backed by legislation, creating binding principles to guide future decisions on taxation, tariffs, subsidies, investment and industrial development.
“We now need to lock it in, in institutions, in law, as well as policy framework, so that it can be enduring,” he said during a panel session.
The minister explained that the proposal aims to stop successive governments from abandoning economic reforms for short-term political gains. He specifically ruled out a return to petrol subsidies, arguing that artificially suppressing prices had distorted the economy and increased the cost of correcting economic problems.
“Let’s not suppress prices. Let’s focus on raising income,” Oyedele said.
However, he clarified that the proposed Nigeria Economic Policy Framework remained a consultation draft and had not received government approval.
Public consultations are scheduled to continue until November 27, 2026, through the Ministry of Finance’s website. The document will then proceed to the Federal Executive Council for approval and the National Economic Council for endorsement.
FG proposes new rules for economic decisions
Oyedele said the framework could require public officials and political appointees to understand and comply with agreed economic principles.
The government is also considering making the framework part of the screening process for political appointments, with copies attached to appointment letters to guide officials in making policy decisions.
Presenting the proposal, the minister criticised Nigeria’s history of inconsistent economic policies, arguing that changes in direction by successive administrations had weakened investor confidence.
“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 proposed framework recommends mandatory Policy Impact Assessments before major economic interventions. Under the proposal, regulators would need to establish the evidence supporting a policy, its costs, intended beneficiaries and expected duration.
It also proposes an annual National Economic Scorecard, to be published by Independence Day, to track changes in real wages, productive employment and poverty.
The framework would focus on stability, productivity, enterprise, capital, people, markets and institutions, with private businesses expected to drive growth under predictable regulations.
Oyedele suggested that political parties could eventually concentrate on explaining how they would implement an agreed national economic framework rather than presenting competing economic manifestos.
FG targets lower inflation before end of 2027
The finance minister also disclosed that the government was targeting low single-digit inflation before the end of 2027, with the aim of creating conditions for single-digit interest rates.
He did not provide a definite timeline for achieving cheaper borrowing.
Oyedele maintained that the reforms were already producing benefits, citing improved access to foreign exchange, student loans, pension payments, wage adjustments and subsidised credit for small businesses.
He added that salary increases and wage adjustments accounted for the largest expenditure item from Federal Government savings associated with foreign exchange and subsidy reforms.
The minister also urged wealthy Nigerians to pay their taxes, warning that inadequate government revenue could worsen inflation, borrowing costs and currency depreciation.
On industrial policy, Oyedele questioned the effectiveness of protecting domestic manufacturers without requiring measurable improvements in local production.
He disclosed that vehicles assembled in Nigeria contained only about five per cent local content despite enjoying tariff and levy protection of up to 60 per cent.
He advocated temporary, performance-based protection for domestic industries, supported by improvements in electricity, logistics and manufacturing competitiveness.
Bagudu backs reforms as Soludo seeks faster growth
The Minister of Budget and Economic Planning, Abubakar Bagudu, reinforced the administration’s position, saying President Bola Tinubu had directed officials to sustain the reforms despite their immediate impact on households.
“There will be no return to subsidy. There will be no return to those distortions,” Bagudu declared.
He said the Federal Government had secured agreements with state governments on fiscal and monetary coordination, infrastructure development, security and domestic production.
Bagudu also disclosed that more than $6bn had been mobilised from the World Bank and other development partners to support household resilience and economic opportunities.
Anambra State Governor, Charles Soludo, warned that Nigeria must not abandon macroeconomic stability but argued that growth of about four per cent remained insufficient to deliver rapid poverty reduction and job creation.
He called for substantially higher investment and faster economic expansion.
Oxford University Professor of Economic Policy, Stefan Dercon, also stressed the need to control inflation and improve electricity supply, logistics and port operations. He cautioned against protecting domestic industries indefinitely.
Similarly, Chema Triki, co-founder and managing director of Growth Teams, urged Nigeria to develop new productive capabilities and expand exports instead of relying excessively on its domestic market.
The Group Managing Director of Flour Mills of Nigeria, Omoboyede Olusanya, called for lower interest rates, reliable infrastructure and stronger agricultural productivity to reduce manufacturing costs.
Lagos State Governor Babajide Sanwo-Olu highlighted investments in ports, transport corridors, rail infrastructure and food logistics as measures to improve productivity and lower business costs.
Meanwhile, the Chairman of the Nigerian Economic Summit Group, Olaniyi Yusuf, urged the government to ensure that reforms translate into affordable living costs, productive employment and measurable improvements in household welfare.
The Minister of State for Budget and Economic Planning, Doris Uzoka-Anite, said the National Development Plan 2026–2030 would prioritise industrialisation, infrastructure, investment mobilisation, human capital development and stronger institutions.
She said the plan aims to accelerate economic growth, create jobs and reduce poverty through better coordination of government policies, budgets and investment programmes.
