Fuel Subsidy Restoration Will Reverse Nigeria’s Economic Gains — Idris

The Minister of Information and National Orientation, Mohammed Idris, has warned against calls to restore Nigeria’s petrol subsidy, saying such a move could reverse the economic gains recorded since the subsidy regime was removed in 2023.

President Bola Tinubu ended the petrol subsidy regime shortly after assuming office in May 2023.

In an opinion article published on Monday, Idris argued that returning to the old system would recreate the fiscal pressures, fuel scarcity, economic distortions and arbitrage opportunities that made the subsidy unsustainable.

According to the minister, Nigeria spent about $10 billion on fuel subsidies in 2022 despite declining oil production and weak government revenues.

Idris said subsidy removal had instead created additional fiscal resources for the three tiers of government. Citing the Federal Government’s Reform Scorecard, he said about ?15.8 trillion in subsidy savings was mobilised for the Federation between June 2023 and December 2025.

He said approximately ?5.43 trillion accrued to the Federal Government, ?6.52 trillion to states and ?3.88 trillion to local governments.

The minister stressed that the funds represented resources released within the broader fiscal system rather than a separate pool of cash.

He also said the increased fiscal space had helped governments meet salary and pension obligations while supporting investments in infrastructure, security, agriculture, education and human capital development.

Idris said approximately ?6.47 trillion had been spent additionally on strategic infrastructure, while more than ?400 billion had been committed to major social investment initiatives.

He further noted that social transfers had reached more than 10 million households.

The minister warned that restoring petrol subsidy would place additional pressure on public finances, especially as the government was already bearing an electricity subsidy estimated at ?3.14 trillion between June 2023 and December 2025.

Idris challenged supporters of subsidy restoration to consider the opportunity costs, asking whether Nigeria should prioritise subsidising petrol or continue funding student loans, infrastructure, healthcare, education, security and allocations to state and local governments.

“Nigeria cannot build tomorrow’s economy by returning to yesterday’s unsustainable subsidy regime. We have moved beyond that model,” he said.

He urged Nigerians to view the reforms from a long-term perspective, arguing that maintaining the changes was necessary to strengthen fiscal stability, investor confidence and the productive capacity of the Nigerian economy.