Oyedele Rejects Fuel Subsidy Return, Citing N20 Trillion Cost

On October 8, 2026, Professor Taiwo Oyedele, the Minister of Finance and Coordinating Minister of the Economy, announced that the federal government will not reinstate fuel subsidies. He stated that such a move could cost over N20 trillion annually and potentially weaken the naira to N3,000 per dollar.

Oyedele addressed proposals for a "production subsidy" aimed at local refining, asserting that while he does not question the motives behind these proposals, the government disagrees with their approach. He explained that a subsidy does not reduce fuel costs but merely alters payment methods.

Nigeria's daily petrol consumption is approximately 50 million litres, and reverting to previous prices would incur significant costs, jeopardizing government funding for essential services. Oyedele warned that weaker revenue could lead to a sovereign credit downgrade, increased borrowing costs, and a decline in foreign reserves.

He outlined four reasons for caution regarding subsidies, including the risk of creating leakages and hiding volatility.