Fuel Subsidy Restoration Will Reverse Nigeria’s Economic Gains, Says Information Minister

The Minister of Information and National Orientation, Mohammed Idris, has warned that restoring petrol subsidy would threaten Nigeria’s fiscal stability and reverse gains recorded under the economic reforms of President Bola Tinubu’s administration.

Idris said returning to the previous subsidy system would recreate the financial pressures, market distortions and opportunities for arbitrage that made the policy unsustainable.

He recalled that Nigeria spent about 10 billion dollars on fuel subsidy in 2022 at a time of declining oil production and weak government revenues, with funds that could have supported education, healthcare, infrastructure and social protection.

According to the minister, resources freed following the removal of petrol subsidy amounted to about 15.8 trillion naira for the Federation between June 2023 and December 2025. He said about 5.43 trillion naira accrued to the Federal Government, 6.52 trillion naira to states and 3.88 trillion naira to local governments.

Idris said the additional fiscal space has helped governments meet salary and pension obligations while increasing investments in infrastructure, security, agriculture and social programmes.

He added that Nigeria is already carrying an estimated 3.14 trillion naira electricity subsidy and warned that adding petrol subsidy would place further pressure on public finances.

The minister maintained that Nigeria should focus on sustaining reforms and building a more productive economy rather than returning to what he described as an unsustainable subsidy system.