Restoring petrol subsidy will reverse economic gains, says information minister
The Minister of Information and National Orientation, Mohammed Idris, has cautioned against calls to restore petrol subsidy, warning that such a move could undermine Nigeria’s improving fiscal position, weaken investor confidence and reverse gains from the economic reforms of President Bola Tinubu’s administration.
Idris stated this in a statement issued by his special assistant on media, Rabiu Ibrahim, in reaction to an opinion article published in some national newspapers on Monday, titled, “Restoring Fuel Subsidy Will Reverse Nigeria’s Economic Gains”.
The minister urged proponents of subsidy restoration to consider its opportunity costs, including the potential impact on student loans, consumer credit, allocations to states and local governments, as well as funding for roads, rail, power, security, healthcare and education.
He recalled that Nigeria spent about $10 billion on fuel subsidies in 2022 amid declining oil production and weak revenues, while the World Bank warned that the scheme was consuming resources that could otherwise support critical sectors of the economy.
Citing the Federal Government’s “Nigeria’s Reform Scorecard: The Benefits, Costs and Harms Prevented”, Idris said Finance Minister Taiwo Oyedele disclosed that subsidy savings mobilised N15.8 trillion for the Federation between June 2023 and December 2025.
He said N5.43 trillion accrued to the Federal Government, N6.52 trillion to states and N3.88 trillion to local governments, clarifying that the figure represented resources released within the Federation’s wider fiscal system rather than a separate pool of cash.
According to Idris, the increased fiscal space has strengthened the capacity of states and local governments to meet salary and pension obligations and invest in essential services, while supporting federal investments in infrastructure, security, agriculture and human capital. He added that N6.47 trillion was spent on strategic infrastructure, while more than N400 billion was committed to social investment initiatives, including NELFUND, MOFI Real Estate Investment Fund, MREIF and CREDICORP.
The minister also noted that social transfers had reached more than 10 million households, while electricity subsidies were estimated at N3.14 trillion between June 2023 and December 2025. He warned that restoring petrol subsidy would place an additional burden on public finances and urged Nigerians to support reforms aimed at building a stronger, more productive and sustainable economy.
