The Minister of Information and National Orientation, Mohammed Idris, has warned that restoring petrol subsidy could reverse Nigeria’s recent economic gains, weaken investor confidence and place renewed pressure on public finances.
Idris said a return to the subsidy regime would recreate the fiscal pressures, market distortions, fuel scarcity and arbitrage that made the system unsustainable before its removal 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,” he said.
The minister made the case in an opinion article published on Monday, August 24, 2026, outlining the fiscal impact of subsidy removal and the risks associated with reintroducing it.
Idris said calls for subsidy restoration must also consider the competing demands for public resources.
“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?” he asked.
He recalled that Nigeria spent about $10 billion on fuel subsidies in 2022 amid declining oil production and weak government revenues.
According to Idris, the World Bank had warned that the subsidy consumed resources that could otherwise have been invested in education, healthcare, infrastructure and social protection.
Citing the Federal Government’s recently presented Nigeria’s Reform Scorecard: The Benefits, Costs and Harms Prevented, Idris said subsidy removal released ₦15.8 trillion in resources for the Federation between June 2023 and December 2025.
Of the amount, approximately ₦5.43 trillion accrued to the Federal Government, ₦6.52 trillion to state governments and ₦3.88 trillion to local governments.
He clarified that the ₦15.8 trillion was not a separate pool of cash but resources released within the Federation’s wider fiscal system.
Idris said the increased fiscal space had strengthened the ability of states and local governments to meet salary and pension obligations while investing in essential services.
He added that the funds had also supported federal investments in infrastructure, security, agriculture and human capital.
The Reform Scorecard recorded approximately ₦6.47 trillion in additional spending on strategic infrastructure, alongside more than ₦400 billion committed to major social investment initiatives, including NELFUND, MOFI Real Estate Investment Fund, MREIF and CREDICORP.
Social transfers, he said, have also reached more than 10 million Nigerian households.
Idris noted that the country was already carrying an estimated ₦3.14 trillion electricity subsidy between June 2023 and December 2025, warning that restoring petrol subsidy would add another major burden to public finances.
He said the organised private sector and other stakeholders in the economy had also warned against reversing the reform.
“Nigeria cannot build tomorrow’s economy by returning to yesterday’s unsustainable subsidy regime. We have moved beyond that model,” Idris said.
The minister urged Nigerians to consider the reforms within the broader goal of achieving long-term economic stability and building a stronger and more productive economy.
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