The Minister of Information and National Orientation, Mohammed Idris, has warned against calls to restore the petrol subsidy, saying such a move could undermine Nigeria’s recent economic gains.
In an opinion article titled “Restoring Fuel Subsidy Will Reverse Nigeria’s Economic Gains,” the minister argued that returning to the old subsidy regime could worsen the country’s fiscal position, weaken investor confidence and undermine the economic reforms of President Bola Tinubu’s administration.
Idris said subsidy removal had helped ease some of the fiscal pressures faced by the government, warning that its restoration could recreate the economic challenges associated with the former system.
According to him, restoring the subsidy could return Nigeria to conditions similar to those experienced in 2022, including fiscal pressures, fuel scarcity, market distortions and opportunities for arbitrage.
The minister therefore urged proponents of subsidy restoration to consider the opportunity costs and broader economic implications before calling for its return.
