Minister Oyedele Warns of Naira Crisis if Fuel Subsidy Returns

Finance Minister Taiwo Oyedele warned that any move by the Federal Government to reinstate petrol subsidy could trigger significant capital flight, weaken the naira, and potentially push the exchange rate to N3,000, N3,500, or even N4,000 per dollar. Oyedele, who serves as Nigeria’s Minister of Finance and Coordinating Minister of the Economy, made this statement during a press briefing at the International Monetary Fund and World Bank Annual Meetings in Bangkok, Thailand.

He expressed that a reversal of current economic reforms could undermine investor confidence and expose Nigeria to further financial pressure. Oyedele noted that investors are closely monitoring Nigeria's policy direction, especially as the country approaches another election cycle.

He emphasized that even a suggestion of returning to fuel subsidy could unsettle financial markets, increase borrowing costs, and pressure businesses and households. The warning comes amid ongoing public debate regarding the impact of petrol subsidy removal and the economic reforms introduced by the Tinubu administration.