By Stephen Simon
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has warned that restoring petrol subsidy could weaken the naira to between ₦3,000 and ₦4,000 against the dollar.
Oyedele gave the warning on Monday during a press briefing on the sidelines of the International Monetary Fund and World Bank annual meetings in Bangkok, Thailand.
He said a return to the subsidy regime could undermine investor confidence, trigger capital flight and increase pressure on Nigeria’s foreign exchange market.
He said a return to the subsidy regime could undermine investor confidence, trigger capital flight and increase pressure on Nigeria’s foreign exchange market.
According to the minister, investors are concerned about whether the Federal Government would reverse its economic reforms ahead of the 2027 general elections.
He warned that even an indication that the administration of President Bola Tinubu was considering restoring the subsidy could unsettle financial markets, increase borrowing costs and worsen economic difficulties for households and businesses.
According to the minister, investors are concerned about whether the Federal Government would reverse its economic reforms ahead of the 2027 general elections.
He warned that even an indication that the administration of President Bola Tinubu was considering restoring the subsidy could unsettle financial markets, increase borrowing costs and worsen economic difficulties for households and businesses.
The minister maintained that the government would not reverse its reform programme, despite growing public concerns over the cost of living and rising petrol prices.
The subsidy debate has continued to generate controversy, with critics questioning the impact of its removal on ordinary Nigerians and calling for measures to ease the hardship.
Oyedele’s warning comes as political parties and their leaders intensify discussions about economic policies ahead of the 2027 elections.
