Restore petrol subsidy or fund student loans, minister question critics

Nigerian Minister of Information and National Orientation, Mohammed Idris, has dismissed calls for the restoration of petrol subsidy, arguing that such a move would reverse the economic progress made since its removal. In an Op-Ed titled "Restoring Fuel Subsidy Will Reverse Nigeria’s Economic Gains," Idris warned that reviving the subsidy would exacerbate fiscal pressures, undermine investor confidence, and recreate the unsustainable economic conditions that plagued the previous regime.

He questioned whether the government should prioritize restoring petrol subsidy or allocate resources to other pressing needs, such as student loans, higher allocations to states and local governments, or funding critical infrastructure projects. Idris emphasized that the subsidy savings had freed up N15.8tn in resources for the three tiers of government, which they can now use to improve services, invest in infrastructure, and support social programs.

He also highlighted the substantial electricity subsidy already in place, which would be an additional burden if petrol subsidy were restored.