The Minister of Information and National Orientation, Mohammed Idris, has cautioned against calls to restore the petrol subsidy.<\/p>\n\n\n\n
He said a return to the old regime would undermine Nigeria\u2019s improving fiscal position, weaken investor confidence, and reverse gains from the economic reforms of the President Bola Tinubu\u2019s administration.<\/p>\n\n\n\n
According to a statement issued by his Media Aide, Rabiu Ibrahim, in Abuja on Monday, the minister stated this in an Op-Ed published on Monday in some national dailies, titled \u201cRestoring Fuel Subsidy Will Reverse Nigeria\u2019s Economic Gains.\u201d<\/p>\n\n\n\n
He outlined the fiscal benefits of subsidy removal, the economic risks averted, and the difficult trade-offs that would confront the country should petrol subsidy be reintroduced.<\/p>\n\n\n\n
\u201cRestoring 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,\u201d Idris said.<\/p>\n\n\n\n
Idris said proponents of subsidy restoration must confront its real opportunity costs.<\/p>\n\n\n\n
\u201cDo 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?<\/p>\n\n\n\n
\u201cDo we restore subsidy, or strengthen the fiscal capacity required to expand healthcare, education and social protection for vulnerable Nigerians?\u201d he asked.<\/p>\n\n\n\n
The minister recalled that in 2022, amid declining oil production and weak revenues, Nigeria spent about $10 billion on fuel subsidies, while the World Bank warned that the subsidy was consuming resources that could otherwise have supported education, healthcare, infrastructure and social protection.<\/p>\n\n\n\n
Citing the Federal Government\u2019s recently presented \u201cNigeria\u2019s Reform Scorecard: The Benefits, Costs and Harms Prevented,\u201d Idris said the Minister of Finance and Coordinating Minister of the Economy, Dr Taiwo Oyedele, disclosed that subsidy savings mobilised N15.8 trillion in resources for the Federation between June 2023 and December 2025.<\/p>\n\n\n\n
He explained that approximately \u20a65.43 trillion accrued to the Federal Government, N6.52 trillion to states and N3.88 trillion to local governments, clarifying that the N15.8 trillion was not a separate pool of cash but resources released within the Federation\u2019s wider fiscal system.<\/p>\n\n\n\n
According to Idris, the increased fiscal space has strengthened the capacity of states and local governments to meet salary and pension obligations and invest in essential services, while supporting major federal investments in infrastructure, security, agriculture and human capital.<\/p>\n\n\n\n
He said, \u201cThe Reform Scorecard recorded approximately N6.47 trillion in additional expenditure on strategic infrastructure, alongside more than N400 billion committed to major social investment initiatives, including NELFUND, MOFI Real Estate Investment Fund, MREIF and CREDICORP.<\/p>\n\n\n\n
\u201cIn contrast, social transfers have reached more than 10 million Nigerian households.\u201d<\/p>\n\n\n\n
Idris added that Nigeria was already carrying an electricity subsidy estimated at N3.14 trillion between June 2023 and December 2025, warning that reintroducing petrol subsidy would impose an additional burden on public finances.<\/p>\n\n\n\n
He noted that the Organised Private Sector and the wider economic community had also cautioned against reversing the reform.<\/p>\n\n\n\n
\u201cNigeria cannot build tomorrow\u2019s economy by returning to yesterday\u2019s unsustainable subsidy regime. We have moved beyond that model,\u201d he said.<\/p>\n\n\n\n
He urged Nigerians to view the reforms in the context of the country\u2019s long-term economic stability and the need to build a stronger and more productive economy.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Minister of Information and National Orientation, Mohammed Idris, has cautioned against calls to restore the petrol subsidy. He said a return to the old regime would undermine Nigeria\u2019s improving fiscal position, weaken investor confidence, and reverse gains from the economic reforms of the President Bola Tinubu\u2019s administration. According to a statement issued by his […]<\/p>\n","protected":false},"author":1,"featured_media":588,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53],"tags":[],"class_list":["post-587","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t