The Minister of Information and National Orientation, Mohammed Idris, has warned that any attempt to restore fuel subsidy would have negative consequences for Nigeria’s economy.
Idris, in a statement issued by his media aide, Rabiu Ibrahim, on Monday in Abuja, said reversing the subsidy policy could weaken the country’s improving fiscal position and undermine investor confidence.
The minister maintained that the removal of fuel subsidy had provided significant fiscal benefits and helped avert some economic risks facing the country.
His comments followed a recent pledge by the African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, to reinstate the fuel subsidy if elected president in the 2027 general elections.
Atiku had argued that the removal of the subsidy under President Bola Tinubu’s administration had failed to deliver meaningful benefits to Nigerians.
Reacting to the proposal, Idris said restoring the subsidy would reverse some of the economic gains recorded by the government.
“Subsidy reversal will worsen Nigeria’s economic gains,” the minister said.
He warned that returning to the old subsidy system could take the country back to the economic conditions of 2022, while recreating fiscal pressures, market distortions, scarcity and opportunities for arbitrage.
Idris also challenged those advocating for the restoration of subsidy to consider its broader opportunity costs and the potential impact on the country’s fiscal stability.
