Fuel Subsidy Return Could Reverse Nigeria’s Economic Gains, Idris Warns

By George Omagbemi

The Minister of Information and National Orientation, Mohammed Idris, has warned against renewed calls for the restoration of petrol subsidy, arguing that returning to the old system could undermine Nigeria’s fiscal position, weaken investor confidence and reverse gains recorded from the economic reforms of President Bola Ahmed Tinubu.

Idris made the position known in an opinion article titled “Restoring Fuel Subsidy Will Reverse Nigeria’s Economic Gains,” published on Monday, August 24, 2026.

The minister argued that restoring the subsidy would recreate the financial pressures and economic distortions associated with the former system, including fuel scarcity and incentives for arbitrage.

According to Idris, bringing back the subsidy would require government to divert significant public resources away from other areas of the economy. He warned that such a decision could undermine the fiscal improvements the administration says have followed the removal of the subsidy in May 2023.

The minister’s position comes amid renewed political debate over the future of petrol pricing, with opposition figures, including former Vice-President Atiku Abubakar, advocating measures aimed at making petrol more affordable to Nigerians.

Atiku’s campaign spokesperson, Kenneth Okonkwo, has argued that the proposal being promoted by the former vice-president should not be interpreted as a return to the old subsidy arrangement, but as a plan to reduce petrol costs through domestic refining and affordable crude supply.

Idris, however, maintained that reversing the subsidy policy would take Nigeria back towards the conditions that made the previous arrangement unsustainable.

The debate comes as the Tinubu administration approaches the 2027 presidential election, with the impact of its economic reforms likely to remain a major campaign issue.

While the government points to improved fiscal conditions and investor confidence, critics continue to argue that subsidy removal has placed significant pressure on households through higher transportation and living costs. Reuters recently reported that the reforms have improved public finances and attracted investor interest, while also intensifying the cost-of-living crisis in the short term.