Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has warned that restoring petrol subsidy could trigger capital flight, weaken the naira to N4,000 per dollar and undermine investor confidence.
Oyedele gave the warning on Monday during a press briefing following the International Monetary Fund (IMF) and World Bank Annual Meetings in Bangkok, Thailand.
He said investors were concerned about the possibility of the Federal Government reversing its economic reforms ahead of the 2027 general elections.
According to the minister, even an indication that President Bola Tinubu’s administration was considering reinstating the subsidy could unsettle financial markets, increase borrowing costs and put further pressure on the naira.
He warned that wealthy Nigerians and businesses could also turn to foreign currencies to protect their assets, increasing demand for dollars and weakening the local currency.
Oyedele also dismissed suggestions that the Nigerian National Petroleum Company Limited’s temporary reduction in petrol retail margins amounted to a return to subsidy. He explained that the move was a commercial decision, not a payment funded by public resources.
