Fuel subsidy return could push Naira to N4,000/$, Oyedele warns

Minister of Finance, Taiwo Oyedele, has cautioned Nigerians against reintroducing the petrol subsidy, warning it could cause capital flight and push the Nigerian naira to N3,000, N3,500, or even N4,000 per dollar. Speaking at an IMF and World Bank press briefing in Bangkok, Oyedele stated that investors had repeatedly questioned the government's commitment to economic reforms ahead of the next election cycle.

He ruled out reversing the government's economic policies and warned that any indication of the administration considering the subsidy would immediately impact financial markets, raise borrowing costs, and exacerbate economic difficulties for households. Oyedele added that capital flight could extend to wealthy Nigerians, business owners, and middle-class investors seeking refuge in dollars, further heightening foreign exchange demand.

He emphasized that ordinary Nigerians would ultimately face the consequences through higher import costs, inflation, and economic hardships.