The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has warned that bringing back petrol subsidy could push the price of petrol to at least ₦2,000 per litre and weaken the naira to about ₦3,000 per dollar.

According to reports by Vanguard and Punch, Oyedele gave the warning on Thursday during a press briefing in Abuja amid renewed calls for the Federal Government to restore the fuel subsidy.

The minister explained that returning to the subsidy regime could reduce government revenue, increase borrowing costs, weaken foreign exchange reserves and put additional pressure on the naira.

He also warned that the move could reverse recent progress in controlling inflation and undermine efforts to stabilise the economy.

Oyedele argued that although subsidy might provide temporary relief to Nigerians, its long-term financial consequences could worsen the country’s economic challenges.

He challenged supporters of the policy to explain how it would be funded sustainably and what petrol price Nigerians should expect if it is restored.

The debate over fuel subsidy continues more than three years after President Bola Tinubu announced its removal in May 2023, a decision that has contributed to rising living costs and renewed calls for government intervention.