Fuel Subsidy Return Could Reverse Nigeria’s Economic Progress — Mohammed Idris Warns
Nigeria’s Minister of Information and National Orientation, Mohammed Idris, has warned against growing calls for the Federal Government to restore the petrol subsidy, saying such a move could undermine the economic progress the country has recorded since President Bola Ahmed Tinubu removed the subsidy in 2023.
Idris argued that bringing back the petrol subsidy could recreate some of the financial and administrative difficulties associated with the former system. He also warned that a reversal could reduce investor confidence, increase pressure on government finances and potentially take Nigeria back to some of the economic problems experienced before the subsidy was removed.
The minister made his position known in an article published on Monday, where he responded to arguments in favour of restoring petrol subsidies and outlined what he described as the wider consequences such a policy could have for the Nigerian economy.
Idris: Nigeria Could Return to 2022 Economic Problems
According to Idris, restoring the subsidy could expose Nigeria to some of the economic difficulties it experienced in 2022, when the government faced significant pressure from the cost of maintaining the subsidy system.
He pointed to issues including heavy government expenditure, shortages of petrol at filling stations and the possibility of people exploiting the subsidy arrangement for personal gain.
The minister therefore urged Nigerians and those advocating for a return to the subsidy system to consider not only the immediate benefit of lower petrol prices but also the amount of public money that would have to be committed to maintaining such an arrangement.
His argument is that while cheaper petrol may provide some immediate relief, the government would still have to find the resources to finance the subsidy, potentially putting pressure on other areas of public spending.
What Could Nigeria Give Up to Fund Subsidy Again?
Idris said those calling for the restoration of petrol subsidy should also consider the government programmes and sectors that could lose funding if substantial public resources were redirected toward subsidising petrol.
He identified education, healthcare, security, roads, youth support and social intervention programmes among the areas where government resources could be deployed.
According to him, money that would otherwise be available for these sectors could once again be committed to keeping petrol prices artificially lower if the subsidy regime were restored.
The minister's position is that the debate should therefore go beyond the pump price of petrol and examine the broader question of how Nigeria should allocate its limited public resources.
He maintained that government spending decisions have consequences across the economy and that restoring a costly subsidy could affect the resources available for other priorities.
Nigeria Spent About $10 Billion on Petrol Subsidy in 2022
One of the major figures cited by Idris was the amount Nigeria spent on petrol subsidy before its removal.
He stated that Nigeria spent approximately $10 billion in 2022 on the subsidy programme.
The figure illustrates the scale of the financial commitment that was involved in keeping petrol prices below what the government described as their actual market-related cost.
Idris also referred to government figures indicating that the removal of the petrol subsidy made approximately ₦15.8 trillion available for administration and development across different levels of government between June 2023 and December 2025.
The minister presented the figure as an indication of the resources that became available after the government stopped directing the same level of funds toward the former subsidy arrangement.
Idris Admits Nigeria Still Faces Economic Challenges
Despite defending the removal of the subsidy, Idris acknowledged that Nigeria's economic difficulties have not disappeared.
He stressed that the government was not claiming that every economic problem facing Nigerians had been solved.
Instead, he argued that the appropriate response to the difficulties being experienced by citizens should not be to abandon the economic reforms.
According to him, the government should continue working to ensure that the benefits of the reforms eventually reach ordinary Nigerians and that the gains being generated from the changes are translated into improvements in people's lives.
This position reflects the wider debate surrounding the subsidy removal, with the government continuing to defend the policy while many Nigerians remain concerned about the impact of higher petrol prices on transportation, food prices and household expenses.
Why Subsidy Removal Remains Controversial
The removal of petrol subsidy has remained one of the most debated economic decisions of the Tinubu administration.
The policy immediately changed the way petrol prices were determined and shifted a significant part of the financial burden away from the Federal Government.
Supporters of the decision argue that the previous subsidy system was too expensive for Nigeria to sustain and that government resources could be better directed toward infrastructure, social programmes and economic development.
Critics, however, have continued to argue that the removal has placed a heavy burden on ordinary Nigerians, particularly because petrol prices affect transportation and the cost of moving goods and services across the country.
As a result, calls for measures that could make petrol more affordable have continued even after the formal removal of the subsidy.
Government Wants Reforms to Continue
Idris maintained that Nigeria should not respond to these pressures by returning to a subsidy system that the government considers financially unsustainable.
Instead, he called for continued implementation of the economic reforms and efforts to ensure that Nigerians benefit more directly from them.
The minister argued that the success of the reforms should not be measured only by government revenue or the amount of money saved after subsidy removal.
He said it was also important for the government to address the difficulties citizens are facing and ensure that the resources made available through the reforms are used in ways that improve the country's economic and social conditions.
Subsidy Debate Likely to Continue
The disagreement over petrol subsidy is unlikely to disappear soon, as the issue remains closely connected to the everyday economic reality of millions of Nigerians.
For households, petrol prices have implications for transportation, the movement of food and other goods, and the general cost of living.
For the government, however, restoring the former subsidy would mean committing substantial public resources to reducing the price consumers pay at the pump.
This creates a difficult policy choice between providing immediate relief to consumers and preserving public resources for other areas of national development.
Idris Warns Against Reversing Economic Reforms
Mohammed Idris ultimately maintained that Nigeria should continue moving forward with its economic reforms rather than return to the former petrol subsidy arrangement.
He warned that reversing the policy could undermine what the government considers to be economic gains achieved since 2023, while also creating new pressure on government finances.
The minister said Nigeria should instead focus on making the existing reforms more effective and ensuring that their benefits reach the wider population.
His position comes at a time when the debate over petrol prices, economic reforms and the cost of living remains a major issue in Nigeria.
For the Federal Government, the challenge now is to demonstrate that the resources made available by subsidy removal can translate into meaningful improvements in the lives of Nigerians.
Mohammed Idris therefore maintained that Nigeria should not return to the petrol subsidy system, arguing that doing so could reverse the economic progress recorded since 2023 and recreate some of the financial problems associated with the former arrangement.