Finance Minister Oyedele warns against fuel subsidy removal

Taiwo Oyedele, the Finance Minister and Coordinating Minister of the Economy, cautioned against the removal of fuel subsidies, stating it could lead to severe economic repercussions. He warned that such a reversal would likely trigger capital flight, causing the naira to depreciate significantly, potentially reaching N4,000 to $1.

Oyedele highlighted that both international and domestic investors would react negatively to any plans by the Federal Government to restore fuel subsidies, which could exacerbate economic hardship in Nigeria. He referenced Indonesia's recent stock market crash, where the Jakarta Composite Index fell by 11.6 percent, as a warning of the potential fallout from undermining investor confidence.

Oyedele emphasized that if the government considered reinstating fuel subsidies, it would lead to a rapid withdrawal of capital, further straining the naira and increasing fuel prices. He noted that Nigerians might also shift their savings into foreign currencies, compounding economic pressures.