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Information minister Idris says fuel subsidy restoration will reverse Nigeria’s economic gains
Nigeria’s minister of information and national orientation, Mohammed Idris, has said that a return to the old fuel subsidy regime would reverse the nation’s economic gains.
He warned against calls to restore petrol subsidy, noting that it would undermine Nigeria’s growing fiscal position, weaken investor confidence, and reverse gains from the economic reforms by the current administration.
President Tinubu had announced the discontinuation of petroleum subsidy on assumption of office in May 2023.
“Restoring subsidy would almost instantly return Nigeria to the economic conditions of 2022, recreating the same fiscal pressures, distortions, scarcity and incentives for arbitrage that made the old system unsustainable,” the minister stated.
“Do we restore petrol subsidy, or sustain student loans and consumer credit for young Nigerians? Do we restore subsidy, or preserve higher allocations to states and local governments? Do we restore subsidy, or continue funding roads, rail, power and security? Do we restore subsidy, or strengthen the fiscal capacity required to expand healthcare, education and social protection for vulnerable Nigerians?” Idris asked.
He stated that Nigeria spent about $10 billion on fuel subsidies in 2022 amid declining revenues and oil production, with the World Bank warning about its negative effects on education, infrastructure, social protection and healthcare.
He cited the minister of finance and coordinating minister of the economy, Dr Taiwo Oyedele’s disclosure of ₦15.8 trillion subsidy savings for the country between June 2023 and December 2025, assisting the federal, state and local governments to meet their financial obligations and invest in essential services and infrastructures.
Idris stressed that the country was already burdened with an estimate of ₦3.14 trillion electricity subsidy between June 2023 and December 2025, warning that a reintroduction of petroleum subsidy would only impose an additional burden on public finances.
“Nigeria cannot build tomorrow’s economy by returning to yesterday’s unsustainable subsidy regime. We have moved beyond that model,” he said.
