PETROL SUBSIDY RETURN MAY REVERSE ECONOMIC GAINS, IDRIS WARNS

The Minister of Information and National Orientation, Mohammed Idris, has warned against calls to restore petrol subsidy, saying the move could undermine Nigeria’s fiscal position, weaken investor confidence and reverse gains recorded under President Bola Tinubu’s economic reforms.

Idris, in an opinion article published on Monday, said bringing back the subsidy would recreate the fiscal pressures, economic distortions, fuel scarcity and incentives for arbitrage associated with the previous system. He noted that President Tinubu removed the subsidy shortly after assuming office in May 2023 as part of efforts to address the country’s fiscal challenges.

The minister argued that restoring the subsidy would force the government to divert funds from other critical areas, including infrastructure, security, healthcare, education, social protection and student support programmes. He urged Nigerians to consider the broader economic implications before supporting calls for its return.

Idris said the subsidy regime had become increasingly expensive and unsustainable, stressing that the government’s decision to remove it was aimed at creating a more stable fiscal environment and encouraging investment. He maintained that reversing the policy could weaken the progress already recorded.

The minister therefore called for the continuation of the economic reforms, arguing that sustaining them would help strengthen government finances and create room for increased investment in critical sectors of the economy.