By Our Reporter
Finance Minister Taiwo Oyedele has warned that restoring petrol subsidy could weaken the naira to between N3,000 and N4,000 to the dollar, trigger capital flight and reverse recent economic gains.
Oyedele reportedly gave the warning on Monday, October 19, 2026, during a press briefing on the sidelines of the International Monetary Fund (IMF) and World Bank Annual Meetings in Bangkok, Thailand. He cautioned that a reversal of the government’s economic reforms could undermine investor confidence, increase borrowing costs and put further pressure on households.
The warning follows a pledge by former Vice-President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, to restore petrol subsidy if elected in 2027. Atiku has questioned how the government has spent the savings from subsidy removal in May 2023, asking, “Where is the money?”
Oyedele reportedly argued that reinstating the subsidy would reduce government revenue, threaten Nigeria’s credit rating, encourage capital flight and deplete foreign exchange reserves. He also warned that the policy could reverse progress in reducing inflation and easing interest rates.
Atiku has since said his proposal would not revive the old subsidy regime, but would target support at domestic production rather than fuel imports. The Presidency has criticised the proposal, challenging him to explain how the intervention would be financed.
The debate highlights the tension between providing immediate relief from high living costs and sustaining economic reforms. While subsidy removal has increased pressure on households through higher transport and energy costs, restoring it without a credible funding plan could impose fresh risks on public finances and currency stability.