FG Warns Against Fuel Subsidy Restoration, Predicts Risks

The Federal Government of Nigeria has issued a warning against any attempts to restore petrol subsidies, asserting that such a move could undermine the fiscal gains achieved under President Bola Tinubu’s economic reform agenda. Minister of Information and National Orientation, Mohammed Idris, articulated this concern in an Op-Ed titled “Restoring Fuel Subsidy Will Reverse Nigeria’s Economic Gains.” He noted that the removal of the petrol subsidy, enacted in May 2023, has been a significant and controversial policy.

Idris cited Nigeria's experience in 2022, where the country spent approximately $10 billion on fuel subsidies, which strained government finances amid declining oil production. He referenced warnings from the World Bank regarding the potential benefits of reallocating subsidy funds to critical sectors like education and healthcare.

The minister reported that subsidy savings have released N15.8 trillion for the Federation from June 2023 to December 2025, enabling better funding for various public services. He also mentioned that electricity subsidies are projected to cost N3.14 trillion during the same period.